And the winner is …
Dec 13, 2022
It is not the Academy Awards but the winner for the most undervalued sector in US stocks is again the energy sector. Based on the 2 years forward earnings estimates, energy is at a 40% discount compared to the S&P 500, is the lowest valued sector in the market and much cheaper than its 15 years median. 2 caveats remain: 1/ Energy has become an crowded trade in the market and 2/ estimates remain heavily dependent on the future direction of the oil price. At ECP, we still hold long term investments in several integrated oil and oil services companies.
