binance left Coinmarketcap net_left adver left

Analysis-U.S. energy shares on fire again to start 2022, stoked by inflation

Thursday, January 13, 2022
Analysis-U.S. energy shares on fire again to start 2022, stoked by inflation © Reuters. FILE PHOTO: Gas prices grow along with inflation as this sign at a gas station shows in Solana Beach, California, U.S. November, 9, 2021. REUTERS/Mike Blake/File Photo

By Lewis Krauskopf

NEW YORK (Reuters) - Shares of U.S. energy companies are soaring in the early days of 2022, driven by a shift to so-called value stocks and assets that stand to benefit from the steepest inflation in nearly four decades.

The energy sector is up over 14% this year, against a 0.8% drop for the overall S&P 500. Energy also posted the biggest gains of any S&P 500 sector last year, rising nearly 48%.

Several factors are behind the sector’s performance. Brent crude has surged about 23% since early December and is near its highest level since late 2018.

Rising energy prices have been a key factor over the past year in pushing up overall inflation. Consumer prices last month had their largest annual gain since June 1982.

“If oil is on the rise and natgas is on the rise, it is going to mean an increase in earnings for those companies that are involved in the energy sector,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. Pavlik is overweight the energy sector in his portfolios, owning shares of Chevron (NYSE:CVX) and Pioneer Natural Resources (NYSE:PXD).

S&P 500 energy companies overall are expected to increase revenue by 72.7% for the fourth quarter from the year-earlier period, according to Refinitiv IBES. Oilfield firms Baker Hughes and Schlumberger (NYSE:SLB) report next week.

Energy's 12.2% spread over the median sector performance in the first week of 2022 ranked as the second-biggest weekly outperformance of any sector over the past decade, according to Willie Delwiche, an investment strategist with market research firm All Star Charts.

“The group has a pretty good record of outperforming the market in inflationary periods and we are in an inflationary period,” said Peter Tuz, president of Chase Investment Counsel Corp. The wealth management firm's energy stock holdings include Chevron, Baker Hughes and Halliburton (NYSE:HAL).

The sector’s outperformance also reflects a broader shift from tech and high-growth stocks that jumped last year to companies that stand to benefit from higher Treasury yields, as surging inflation increases expectations the Federal Reserve will be more aggressive in normalizing monetary policy.

The S&P 500 growth index is down nearly 3% so far this year, while the S&P 500 value index, which is more heavily weighted in shares of energy firms, banks and other economically sensitive and comparatively cheap companies, has risen 1.5%.

The relatively small size of the 21-company energy sector, which has a 3% weight in the S&P 500 compared to a nearly 7% weight for Apple (NASDAQ:AAPL) alone, means that even small shifts in investors’ portfolios could buoy energy stocks.

“When you see all the selling that is going on in the megacap tech stocks, if even a fraction of that money finds its way into the energy sector, the stocks ought to do well,” Tuz said.

The energy sector’s robust gains follow years of underperformance amid volatile commodity prices, company struggles with capital discipline and investor wariness of fossil fuel investments. The sector remains down about 7% since the end of 2011 against a 620% gain for the technology sector over that time.

Signs the Fed may not be as aggressive as expected in raising rates could raise the allure of tech companies, which tend to be particularly sensitive to higher yields, and sap some demand for energy stocks. Concerns over slowing global growth also could weigh on crude prices.

For now, however, analysts appear confident oil prices will remain strong.

Energy stocks are "well placed" for 2022, analysts at UBS Global Wealth Management wrote on Wednesday, pointing to their expectations of Brent remaining between $80 to $90 a barrel this year and the sector's above-market dividend yields.

Leave your comment
ig right nyse right Neteller adver right
APPROVED BROKERS
rakuten_main right top net_home_top ig_main right top Binance _ main right top fbs_main right top tifia_main right top
28-01-2022 14:39:34 (UTC+7)

EUR/USD

1.1145

+0.0002 (+0.02%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (6)

EUR/USD

1.1145

+0.0002 (+0.02%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (6)

GBP/USD

1.3379

-0.0006 (-0.04%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (6)

Sell (2)

USD/JPY

115.24

-0.10 (-0.09%)

Summary

Neutral

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (8)

Sell (0)

AUD/USD

0.6978

-0.0053 (-0.75%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (3)

Sell (7)

USD/CAD

1.2792

+0.0052 (+0.41%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (9)

Sell (0)

EUR/JPY

128.43

-0.09 (-0.07%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (4)

EUR/CHF

1.0380

+0.0011 (+0.11%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (7)

Gold Futures

1,784.10

-9.00 (-0.50%)

Summary

Neutral

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (4)

Sell (1)

Silver Futures

22.262

-0.414 (-1.83%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

Copper Futures

4.3072

-0.1163 (-2.63%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (0)

Crude Oil WTI Futures

86.70

+0.09 (+0.10%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (5)

Brent Oil Futures

88.42

+0.25 (+0.28%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (6)

Natural Gas Futures

4.647

+0.364 (+8.50%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

US Coffee C Futures

235.85

+3.80 (+1.64%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (8)

Euro Stoxx 50

4,136.91

-48.06 (-1.15%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (2)

S&P 500

4,343.07

+16.57 (+0.38%)

Summary

Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (4)

Sell (4)

DAX

15,318.95

-205.32 (-1.32%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (1)

FTSE 100

7,466.07

-88.24 (-1.17%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (4)

Hang Seng

23,550.08

-256.92 (-1.08%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

US Small Cap 2000

1,906.80

-25.43 (-1.32%)

Summary

Neutral

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (7)

Sell (2)

IBEX 35

8,609.80

-96.20 (-1.10%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (0)

BASF SE NA O.N.

68.510

+0.060 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Bayer AG NA

52.83

+0.25 (+0.48%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Allianz SE VNA O.N.

227.80

-0.90 (-0.39%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (10)

Sell (1)

Adidas AG

236.15

-6.00 (-2.48%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (0)

Deutsche Lufthansa AG

6.791

-0.254 (-3.61%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (5)

Sell (1)

Siemens AG Class N

138.34

-2.16 (-1.54%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (10)

Sell (0)

Deutsche Bank AG

11.912

-0.008 (-0.07%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (9)

Sell (0)

 EUR/USD1.1145↑ Sell
 GBP/USD1.3379Buy
 USD/JPY115.24Neutral
 AUD/USD0.6978↑ Sell
 USD/CAD1.2792↑ Buy
 EUR/JPY128.43Sell
 EUR/CHF1.0380↑ Sell
 Gold1,784.10Neutral
 Silver22.262Buy
 Copper4.3072↑ Buy
 Crude Oil WTI86.70Sell
 Brent Oil88.42Sell
 Natural Gas4.647Buy
 US Coffee C235.85↑ Sell
 Euro Stoxx 504,136.91↑ Buy
 S&P 5004,343.07Sell
 DAX15,318.95Buy
 FTSE 1007,466.07Neutral
 Hang Seng23,550.08↑ Buy
 Small Cap 20001,906.80Neutral
 IBEX 358,609.80↑ Buy
 BASF68.510↑ Buy
 Bayer52.83↑ Buy
 Allianz227.80↑ Buy
 Adidas236.15↑ Buy
 Lufthansa6.791↑ Buy
 Siemens AG138.34↑ Buy
 Deutsche Bank AG11.912↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,170/ 6,230
(0/ 0) # 1,327
SJC HCM6,180/ 6,250
(0/ 0) # 1,344
SJC Hanoi6,180/ 6,252
(0/ 0) # 1,346
SJC Danang6,180/ 6,252
(0/ 0) # 1,346
SJC Nhatrang6,180/ 6,252
(0/ 0) # 1,346
SJC Cantho6,180/ 6,252
(0/ 0) # 1,346
Cập nhật 28-01-2022 14:39:36
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,784.86-12.14-0.68%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2486025350
RON 95-II,III
E5 RON 92-II2359024060
DO 0.05S1890019270
DO 0,001S-V1925019630
Dầu hỏa1779018140
ↂ Giá dầu thô thế giới
WTI$86.58+1.681.94%
Brent$89.82+1.181.31%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.470,0022.780,00
EUR24.449,3926.003,22
GBP29.369,5930.841,11
JPY189,35201,87
KRW16,1119,77
Cập nhật lúc 18:50:56 28/01/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right adver main right