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?
Momentum Indicator for IYE turns negative, indicating new downward trend
IYE saw its Momentum Indicator move below the 0 level on May 30, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 99 similar instances where the indicator turned negative. In of the 99 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for IYE turned negative on May 31, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
IYE moved below its 50-day moving average on May 02, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IYE crossed bearishly below the 50-day moving average on May 04, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for IYE entered a downward trend on May 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where IYE's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IYE advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
IYE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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
General Information
Category Energy
| 1 Day | |||
|---|---|---|---|
| MFs / NAME | Price $ | Chg $ | Chg % |
| AFCWX | 15.43 | 0.19 | +1.25% |
| American Century Focused Intl Gr R | |||
| NPFFX | 52.60 | 0.58 | +1.11% |
| American Funds New Perspective F1 | |||
| MLPDX | 4.62 | 0.03 | +0.65% |
| Invesco SteelPath MLP Income A | |||
| EILGX | 14.71 | 0.08 | +0.55% |
| Eaton Vance Atlanta Capital Focused Gr I | |||
| EQIDX | 10.17 | N/A | N/A |
| Allspring Emerging Markets Eq Inc Adm | |||
IYE and
Correlation & Price change
A.I.dvisor indicates that over the last year, IYE has been closely correlated with FENY. These tickers have moved in lockstep 100% of the time. This A.I.-generated data suggests there is a high statistical probability that if IYE jumps, then FENY could also see price increases.
