PXJ: Right Space And Outperforming Competitors

seekingalpha05-22

Jeremy Poland I continue to beat the drum on the bull case for the Energy sector. Growing demand globally, combined with the sudden realization that AI is going to use a ton of energy, makes this a no...

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Growing demand globally, combined with the sudden realization that AI is going to use a ton of energy, makes this a no...</p>\n\n<a href=\"https://seekingalpha.com/article/4694995-pxj-right-space-and-outperforming-competitors\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PXJ: Right Space And Outperforming Competitors</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPXJ: Right Space And Outperforming Competitors\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-22 21:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4694995-pxj-right-space-and-outperforming-competitors><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Jeremy Poland I continue to beat the drum on the bull case for the Energy sector. Growing demand globally, combined with the sudden realization that AI is going to use a ton of energy, makes this a no...</p>\n\n<a href=\"https://seekingalpha.com/article/4694995-pxj-right-space-and-outperforming-competitors\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PXJ","symbol_name":"Invesco Oil & Gas Services ETF","start_time":0,"source_url":"https://seekingalpha.com/article/4694995-pxj-right-space-and-outperforming-competitors","article_id":"2437966792","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1757271699/image_1757271699.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437966792","pubTimestamp":1716386207,"columns":[],"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Jeremy Poland I continue to beat the drum on the bull case for the Energy sector. Growing demand globally, combined with the sudden realization that AI is going to use a ton of energy, makes this a no","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PXJ":"Invesco Oil & Gas Services ETF","BK4550":"红杉资本持仓","BK4588":"碎股","FDN":"First Trust Dow Jones Internet I","XES":"SPDR S&P Oil & Gas Equipment & Services ETF","OIH":"石油服务ETF","BK4585":"ETF&股票定投概念"},"translate_title":"PXJ：正确的空间和超越竞争对手","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OIH":1,"PXJ":1,"XES":1,"FDN":0.83},"content_text":"Jeremy Poland I continue to beat the drum on the bull case for the Energy sector. Growing demand globally, combined with the sudden realization that AI is going to use a ton of energy, makes this a no-brainer. There are many exchange-traded funds, or ETFs, out there one can buy into for cheap and easy access. One that’s worth considering is the Invesco Oil & Gas Services ETF (NYSEARCA:PXJ), which is based on the Dynamic Oil Services Intellidex Index. Companies in the index must receive at least 50 percent of their revenue from oil and gas. The companies in the fund range from drillers to explorers to producers, making performance driven not just by the price of Oil (CL1:COM), but also by the anticipated increase in future drilling and extraction. ETF Holdings No position in PXJ makes up more than 5.7% of the fund. The holdings are fairly inexpensive, resulting in the fund’s Price to Earnings Ratio being just 12.63, with a Price to Book ratio of just 1.65.   invesco.com The interesting thing about this mix is that it’s not on the large-cap end. The majority of this fund is in the mid to small-cap range. Admittedly, this hasn’t been a good thing in the past several years, as investors largely navigated to mega-cap companies across all sectors. But as breadth expands, this headwind likely turns into a tailwind with more upside momentum than other large-cap energy plays.   invesco.com It's worth noting that while this does have exposure internationally, 80% of the fund is U.S.-based, but there is some global diversification, which is nice to see.   invesco.com Sector Composition and Weightings Almost 60% of the holdings in PXJ belong to companies that provide oilfield services and equipment; they include drilling contractors, manufacturers of equipment and supplies, and service providers to the exploration and production activities of oil and gas companies. The remaining is balance between Storage & Transportation and Drilling. Drilling clearly is more dependent on the price of Oil, while services and equipment in general are more dependent on use and long-term contracts.   invesco.com Peer Comparison Other ETFs tracking the oil services sector include the VanEck Vectors Oil Services ETF (OIH) and the SPDR S&P Oil & Gas Equipment & Services ETF (XES). PXJ has two key differences from these and other similar ETFs. The main difference is the fund’s focus on the Dynamic Oil Services Intellidex Index, which is a dynamic selection methodology that looks at measures such as price momentum, earnings momentum, quality, management action, and value, all of which can have an impact on performance compared with an index that tracks traditional market-cap-weighted stocks. When we look at performance, the selection methodology does seem to have added value, as the fund has outperformed both OIH and XES.   stockcharts.com Pros and Cons The case is clear here. Energy prices are going up, and that often leads to increased drilling activity, thus increasing the demand for oilfield services. This, combined with significant technological advancements in extraction and production, can lead to efficiency gains and cost reductions in the whole sector, and attractive margins that will eventually impact stock prices positively. But there are also lurking risks. For one, the oil and gas industry is highly cyclical, with the prices of crude oil and natural gas subject to unpredictable volatility, driven in the short term by geopolitical developments and in the medium to longer term by supply and demand imbalances, as well as regulatory changes. This volatility can seep into the prices of oil and gas services companies, potentially dragging down the value of something like PXJ. There also exist longer-term structural headwinds, including the inevitable transition to renewable energies that will emerge over the coming decades. Conclusion  Overall, PXJ looks like a solid fund as it provides targeted exposure to the oil and gas services industry, a key link in the global energy chain. The fund’s broad representation, dynamic selection methodology and industry leaders exposure make PXJ an interesting option for investors looking for exposure to the price of oil as well as technological innovation, provided they remain cognizant of industry volatility and the long-term secular headwinds emerging from a steady march towards renewable energy.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2437966792"}