Are Energy Stocks Inexpensive on the Valuation Side?
The recent volatility in the oil sector has led to the Dow Jones U.S. Oil & Gas Index losing ~8% in November, thus prompting some investors to label the energy sector as cheap. Thing is, even when the energy stocks were rising owing to a rally in the oil prices earlier this year, some analysts and market observers were still labeling the sector inexpensive based on valuations.
Penalized severely by the recent oil rout, WTI futures touched their worst losing streak in nearly 34 years, while IYE -- and ETF that tracks the Dow Jones U.S. Oil & Gas Index -- suffered a year-to-date loss of ~7% and falling 15.68% below its 52-week high.
Several energy stocks trade at roughly a 50% discount to the broader market. Is the Energy sector a "buy" in these conditions?
IYE's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for IYE turned positive on July 08, 2025. Looking at past instances where IYE's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 08, 2025. You may want to consider a long position or call options on IYE as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
IYE moved above its 50-day moving average on June 06, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for IYE crossed bullishly above the 50-day moving average on June 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IYE advanced for three days, in of 357 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 295 cases where IYE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for IYE moved out of overbought territory on June 23, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IYE broke above its upper Bollinger Band on June 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category Energy
Advertisement