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NYSEARCA:XLE

Energy Select Sector SPDR Fund (XLE)

62.68
+0.39 (0.63%)
as of Aug 28, 2026, 8:00:00 pm Market Open.
65 watching
0
Investor Insights
star iconAug 30, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Experts seem optimistic about the Energy Select Sector SPDR Fund (XLE-N), citing a mix of growth potential, dividends, and ongoing demand in the energy sector. While 30% of the stocks in this space are at 52-week highs, they do not consider it an overbought market. Their positive outlook on oil prices, expected to rise between $70 and $80, is supported by global inventory needs and production levels. Experts emphasize the importance of shareholder rewards and production growth rather than strictly focusing on oil prices. Overall, the energy sector's healthy earnings growth and reasonable valuations, coupled with geopolitical factors, give experts confidence moving forward.

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Consensus
Bullish
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Valuation
Fair Value
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OXY
TOP PICK

(Energy is one of the 3 sectors he suggested in remarks under January Effect.) The average gain for energy between January 17 and May 5 is about 7.8%. Has a tremendous frequency of positive results, about 90% of the time. This is more of a Buy on weakness. Try to get it at around its 20 or 50 day moving average.

WEAK BUY

Seasonal trend for oil just ended. Then we get another in the summer. There is a modified cup and handle. If it gets above 81-1/4 he would buy it but thinks there is better ones in Canada like SU-T. However you get the diversity of an ETF with this one.

COMMENT

Historically the US energy sector does very well from around the end of January right through until the 2nd week of May. Energy stocks in the US have a high correlation to the price of gasoline. What is happening to the price of gasoline will pretty well indicate what will happen to this ETF. (See Top Picks)

BUY

Oil and Gold Correcting? If you are making a trade that will last the next 2 or 3 weeks, you could make money buying at the bottom of the range, but over the next 2 or 3 years it will trade in a range.

BUY

If you are going to have a bull market in energy, which he believes we will, an ETF is probably a better thing to do than individual stock picking.

DON'T BUY
If he thought the price of oil was going to be dramatically higher, he might consider buying this. To get this to happen, you have to see a real strengthening in the world economy and he doesn't see that anytime soon. If he were going to do this, he would write Covered Calls or Put Options on it. Doing it through the US you have the currency issue giving more risk.
TOP PICK
Has been overdone on the downside. Valuation is about 10X earnings. Pays decent dividends. Technically, the momentum is not confirming the decline in the price indicating that the selling pressure is diminishing.
TOP PICK
Chart shows an obvious uptrend. There could be a currency play here as well. His company is not exactly bullish on the stock market and has a yellow flag up. Has just barely broken out.
PAST TOP PICK
(A Top Pick Jan 24/07. Up 9.5%.) This is broken out with the oils. Very over bought at this time.
TOP PICK
Has been trading in a range between $52 and $62 and will use this to layer Buys. (Ed. I think.)
DON'T BUY
Historically, the best time to buy energy stocks is from the end of January to the end of May. At the end of the cycle now.
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