Continue holding energy stocks because they’ll likely go further up from here, says Requisite Capital’s Bryn Talkington. The Vanguard Energy Index Fund ETF is already up 45% year-to-date.
Energy will contribute 18% to S&P bottom-line this year
Talkington agrees that “Energy” is trading at levels not seen in the last two decades, but views the ongoing war in Ukraine as a strong enough tailwind for the sector to remain resilient. On „Raportul de la jumătatea timpului” al CNBC, ea a adăugat:
Energy, a year and a half ago, was about 2.80% of the S&P. Right now, it’s about 4.80%. This year, energy will contribute $18 to the S&P’s bottom-line, close to 18%. So, I think the earnings are real there and the returns, therefore, are justified.
According to Pioneer Natural Resources, oil will likely remain above 100 dolari pe baril in the next couple of years as Russian energy goes off the market.
Other reasons why Talkington is bullish on energy stocks
Talkington still dubs “Energy” as attractively inexpensive relative to the S&P, which adds to her reasons for being positive on the space. Speaking with CNBC’s Scott Wapner, she said:
I see people getting sceptical but remember that you do get great dividends in energy stocks, even if you didn’t get much capital appreciation. Devon is still paying 8.0% dividend. I’ll take that all day long even if Devon does nothing.
Earlier in May, Devon Energy reported mixed results for its fiscal first quarter. Stocul is up more than 50% versus the start of the year 2022.
Mesaj Vanguard Energy ETF a crescut cu 45% YTD: ce urmează? a apărut în primul rând pe Invezz.
Source: https://invezz.com/news/2022/05/23/vanguard-energy-etf-is-up-45-ytd-whats-next/