IYE: Energy Stocks Rallying Despite Weak Oil Prices, Cheap Valuation
- I have a buy rating on IYE, viewing it as undervalued with positive price action despite mixed sentiment and wavering oil prices.
- IYE offers exposure to U.S. energy equities, with a low expense ratio and high dividend yield, making it a compelling value.
- The ETF's technicals are encouraging, with a bullish ascending triangle pattern and a golden cross, suggesting potential upside to $63.
- IYE's portfolio is heavily weighted towards large-cap value stocks like Exxon Mobil and Chevron, with a low P/E ratio and cyclical risks.
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It’s going to be a challenge for domestic oil & gas companies to book big profits if the Trump administration is successful in its “drill, baby, drill” initiative concerning US energy production. Perhaps investors should take their cue from
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