Connect with us


Energy Sector

Why Traders Say These 2 Energy Stocks Are Worth A Look Now

Why Traders Say These 2 Energy Stocks Are Worth A Look Now

The energy sector has been surging higher after a rough 2020, and these 2 stocks in the space might be the best way to play the reversal.

The energy sector has been on a roll lately.

The XLE S&P 500 Energy Sector ETF is up nearly 33% since the start of the year, and is up 66% since the start of November.

But after trailing the rest of the market last year, the reversal seen this year has “caught a lot of people by surprise,” said Piper Sandler senior technical research analyst, Craig Johnson said. 

Pointing to the XLE’s chart, Johnson said “it’s at a very interesting inflection point.”

Source: TradingView.

“You’ve made a very nice double-bottom low and it looks like… we’re getting very close to reversing,” Johnson said. “I think from here, people have to add energy exposure – begrudgingly.”

But as for which stocks in the sector might be good bets now, Johnson said he’s keeping an eye on Exxon Mobil (NYSE: XOM).

The technician said that if Exxon can close above $54, it “should open the door to a new leg higher. The stock closed at $55.76 per share on Thursday.

Source: TradingView.

BK Asset Management’s Boris Schlossberg said he’s watching shares of Marathon Petroleum (NYSE: MPC).

“It’s the largest refiner in the U.S.,” Schlossberg said of Marathon. “It’s just sold off its retail operations to 7-Eleven. It’s going to use that money to pay down debt and maybe buy back shares. It’s got a 4.25% yield.”

Marathon Petroleum delivered an earnings beat earlier this month. CEO Michael J. Hennigan said in an earnings release that the company “took aggressive action to reposition the company for long-term success” in 2020.

“As we enter 2021 and progress toward the close of the $21 billion sale of our Speedway business,” Hennigan said, “out top priorities remain reducing debt to strengthen our balance sheet and efficiently returning capital to shareholders.”

More in Energy Sector

Read This Next

To Top