Energy Stocks: Big Chill, Future Thrill?
Energy stocks are not only the worst performing sector today, but they also hold the 1st or 2nd spot on the loser list for the week, the month and since September 1st.
In short — if the market is cold, then energy stocks are its dry ice.
Now consider this, the S&P 500 energy index has fallen 50% from its top in May 2008 to a 3 1/2 year low. From the same peak in May, crude is now down 45% but only to a 1 year low.
Granted, energy earnings estimates have come down, but the sector is still forecast to grow profits by a market-topping 50% in the 3rd quarter.
So not only are these onetime windfall-producing wonders cheap, but they also pay above average dividends too.
Check out these Big Oil names from the AMEX Oil Index