XLE Breakout – Energy Select Sector SPDR ETF (NYSEARCA:XLE) | Seeking Alpha

Summary

  • XLE has broken out of a downtrend that began in late 2016.
  • With crude oil potentially breaking out of its downtrend, the upside for XLE could be substantial.
  • I see XLE as relatively undervalued to crude oil, and plan to remain long if crude oil confirms its upward move.

Read the full article at Seeking Alpha right here: XLE Breakout – Energy Select Sector SPDR ETF (NYSEARCA:XLE) | Seeking Alpha 

Is It Finally Time To Invest In Energy? (XLE)

Beaten-down sectors provide opportunity

The S&P 500 Index is up about 10% so far this year, but the energy sector is off over 19%.1 Yet, my team believes conditions are ripe for a turnaround in energy.

  • Exploration, production and service company valuations are near historic lows based on our analysis, trading at a price-to-book (P/B) multiple of 0.55. This compares with an average P/B of 0.88 for the sector using data all the way back to 1952.2
  • Many energy companies are currently what we call “under-earners.” In good times, these firms can be cash-generating machines, but the long stretch of low energy prices has resulted in layoffs, dividend cuts, fewer stock buybacks and expense reductions. Once prices rebound a bit and stick, these companies should be even better positioned for growth, in our view.
  • The sector is clearly out of favor and has been for some time. We believe investors are always wise to consider sentiment, but should then dig a little deeper and analyze the trends and facts.
  • After the long period of underperformance, many funds (understandably) lightened up on energy shares and are now underweight.3 At some point, this trend will reverse, and demand for these shares should increase. Also, many investors have taken short positions in energy stocks, and they will have to buy shares in order to settle these positions.
  • Last, energy company capital expenditures (CapEx) are at historically unsustainable levels relative to cash flow.

Read the full article at ETF Daily News right here: Energy Select Sector SPDR (ETF)(NYSE:XLE): Opportunity Awaits | ETF Daily News

Insiders Are Buying Oil Stocks: Should You? (XLE) (PXI)

 

With some oil stocks hitting new 52-week lows, company insiders are seeing bargains in the shares. Please pick a time stamped topic below:

(0:40) – Oil Stocks Plunge Lower: Insiders Are Buying
(4:00) – Insiders Buying = Value Indicator: 2 Value Scenarios
(7:00) – What Are the Insiders Buying: Large Cap
(13:40) – Small Cap Companies: The Place to Be?
(17:20) – Episode Roundup: Podcast@Zacks.com

The Deep Value ETF Accumulator invests in XLE & PXI.