XOP: Oil And Gas Relative Strength Picks Up, ETF Valuation Compelling
- Energy stocks have been bullish; XLE hit an all-time high, and Goldman Sachs is optimistic about oil prices short-term but cautious medium-term.
- XOP is rated a buy due to its low P/E ratio, improved technicals, and diversified portfolio, despite seasonal weaknesses.
- XOP's top 10 holdings are less than one-third of the fund, with a strong value focus and significant SMID cap allocation.
- Technical analysis shows bullish signals for XOP, with a potential target of $160, though resistance around $155 and seasonal risks remain.
SimonSkafar
Energy stocks have been on a stealthy bullish run over the past several months. I noticed that the Energy Select Sector SPDR ETF (XLE) notched a new all-time closing high earlier this week (on a total return basis) as
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