From a price-to-earnings standpoint, the energy sector is the cheapest sector in the S&P 500.
It can also be surprisingly stable at times. Pricing for West Texas Intermediate crude was down slightly in 2019, but for the most part it was fairly steady for the year.
Yet given this price stability and the perceived cheapness in the sector’s equity prices, there are few bidders for the stocks.
In fact, relative strength (a measure of market demand) for the sector is among the worst in the S&P 500.
The sector did go through quite a bit of stress in 2015 and 2016, which may have …read more
