Oil Above $90, Pump Above $4 — And 7 Energy Stocks Still Trading At A Wide Discount

Benzinga_recent_news04-16 23:26

Something in the market’s math doesn’t hold. The IEA’s director general Fatih Birol has described the current situation at the Strait of Hormuz as the worst energy crisis in history. Oil – which is ...

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Oil – which is ...</p>\n\n<a href=\"https://www.benzinga.com/markets/equities/26/04/51863051/hormuz-crisis-energy-stocks-cheap-valuation-buying-opportunity\">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":"USL","symbol_name":"United States 12 Month Oil Fund LP","start_time":0,"source_url":"https://www.benzinga.com/markets/equities/26/04/51863051/hormuz-crisis-energy-stocks-cheap-valuation-buying-opportunity","article_id":"2627321295","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/04/16/Oil-Pump-Jacks-And-Refinery-Silhouettes-.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/markets/equities/26/04/51863051/hormuz-crisis-energy-stocks-cheap-valuation-buying-opportunity","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2627321295","pubTimestamp":1776353160,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Oil surged 38% from its pre-war level of $65, gas jumped from $2.98 to $4.09, and Kpler data shows Hormuz flows are still severely disrupted. Yet seven major energy stocks still price in a resolution that hasn't arrived — trading at 7x to 11x forward P/E. Is this a generational buying opportunity, or a value trap?","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"USL":"United States 12 Month Oil Fund LP","OILK":"ProShares K-1 Free Crude Oil ETF","BWET":"BREAKWAVE TANKER SHIPPING ETF","DUG":"二倍做空石油与天然气ETF(ProShares)","BK4585":"ETF&股票定投概念","VDE":"Vanguard Energy ETF","BNO":"美国布伦特原油基金有限合伙企业","BK4570":"地缘局势概念股","OILT":"Texas Oil Index ETF","UGA":"United States Gasoline Fund LP","OILU":"MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN","DBO":"原油ETF-PowerShares","DIG":"二倍做多美国油气指数","DBC":"商品指数ETF-PowerShares DB","DBE":"能源商品ETF-PowerShares","IEO":"iShares Dow Jones U.S. Oil & Gas","UCO":"二倍做多彭博原油ETF","XLE":"SPDR能源指数ETF","GUSH":"Direxion Daily S&P Oil &Gas Exp. & Prod. 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Bear 2X Shares","IXC":"全球能源业ETF-iShares","XOP":"油气开采指数ETF-SPDR S&P","PXJ":"Invesco Oil & Gas Services ETF","OIH":"石油服务ETF","USO":"美国原油ETF","ERX":"二倍做多能源ETF-Direxion","DRLL":"Strive U.S. Energy ETF","USOI":"ETRACS Crude Oil Shares Covered Call ETN","USE":"USCF Energy Commodity Strategy Absolute Return Fund"},"translate_title":"油价突破90美元，油价突破4美元——7只能源股仍大幅折价","themeId":null,"isJumpTheme":false,"ttsUrl":"https://static.tigerbbs.com/f828e6116990361b62e155361cd4e312","symbols_score_info":{"DBE":0.85,"OILT":0.85,"USO":0.88,"BNO":0.85,"OILU":0.85,"PXJ":0.85,"GUSH":0.85,"USL":0.85,"SCO":0.6,"OILK":0.85,"DRLL":0.85,"USE":0.85,"ERX":0.85,"VDE":0.85,"DRIP":0.85,"IEO":0.85,"DBO":0.85,"OIH":0.85,"BWET":0.85,"IXC":0.85,"DIG":0.85,"UGA":0.85,"XOP":0.85,"XLE":0.9,"UCO":0.6,"DBC":0.85,"DUG":0.85,"USOI":0.85},"content_text":"Something in the market’s math doesn’t hold. \nThe IEA’s director general Fatih Birol has described the current situation at the Strait of Hormuz as the worst energy crisis in history. Oil – which is trading above $90 a barrel – is still 38% above where it traded the day before the conflict began.\nAt $4.09 per gallon nationally, and $5.86 in California, the pump is not signaling resolution.\nYet seven major energy producers and refiners — the companies that drill the oil, refine the gasoline, and collect the margin — are trading as if Hormuz is already open, the crisis is resolved, and crude is heading back to $65. \nTheir forward price-to-earnings multiples sit between 7x and 11x, roughly half the S&P 500’s consensus forward P/E of around 22x. \nThe disconnect is not subtle. It is structural.\nThe State Street Energy Select Sector SPDR ETF (NYSE:XLE) is up 27% year-to-date, which sounds impressive until you consider that crude oil is up 38% from pre-war levels. \nThe sector has underperformed its own commodity — and pulled back 10% from its March peak — even as the underlying supply disruption has not materially improved. \nThat compression is where the opportunity, and the risk, lives.\nThe April drawdown is the mechanism that created this entry point. \nEvery name in the table has sold off between 5% and 14% month-to-date, even as WTI has held around $90 and Brent has pushed toward $95. \nForward price-to-earnings — next-twelve-months P/E — divides the stock price by the earnings analysts expect the company to produce over the coming year. A lower number means investors are paying less for each dollar of expected profit. At 7x to 11x, these names are priced as though the energy cycle ends soon.\nBoth names trade below 11x forward earnings despite a supply environment that should structurally support refining margins through the summer driving season.\nEnergy stocks have always traded at a discount to the broader market, reflecting the cyclical nature of commodity earnings. But a 50%-plus discount in an environment where oil has been above $80 for more than six weeks — and where there is no immediate resolution to the Strait of Hormuz disruption — is unusual.\nThe explanation lies in what the market is implicitly pricing. Investors assigning a 7x or 8x multiple to an oil producer are assuming one of two things: either the oil price collapses back toward $60 on a ceasefire, or the earnings cycle peaks before they can compound. \nBoth are reasonable risks. Neither is certain.\nThe disconnect is sharpest at APA Corp., which trades at 7.2x forward earnings despite a 49.6% year-to-date return — still the lowest multiple among large-cap U.S. producers.\n Devon Energy Corp. shows the most analyst conviction, with a median price target implying 31.6% upside from current levels despite an already strong run. \nThe valuation gap is a two-sided trade. On one side, if the Hormuz disruption proves durable — no ceasefire, no rerouting solution that meaningfully restores flow — then $90 oil becomes the floor, not the ceiling, and 7x to 11x multiples look like a significant mispricing. \nEvery dollar of oil above $70 flows almost directly to free cash flow for low-breakeven producers like EOG Resources and Coterra Energy.\nOn the other side, a rapid ceasefire and Strait reopening could bring oil back toward $65 to $70 within weeks, compressing earnings and making current multiples look less attractive in hindsight. \nThe market is not wrong to embed that optionality — it is simply the question of which scenario deserves more weight.\nSeven of the cheapest stocks in the S&P 500 right now happen to be in the sector with the most direct exposure to the defining macro story of 2026. \nWhether that is an opportunity or a trap depends entirely on a waterway 7,000 miles from Wall Street.\nImage: Shutterstock\nTo add Benzinga News as your preferred source on Google, click here.","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,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"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,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.0","shortVersion":"4.42.0","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/2627321295","isCrawlerRequest":true}