Energy stocks have seen a strong bounce over the past 1½ months, but a stronger sign that the sector has turned a corner may lie in recently reported earnings.
Chevron, Exxon Mobil, Royal Dutch Shell and BP soundly beat Wall Street estimates when they reported their first-quarter earnings last week. Though the oil giants saw lower revenue and profit compared to the previous year, the results suggested they may not have been in as bad a situation as previously believed.
Meanwhile, timing may also work in their favor. In the last two weeks of the quarter, crude oil began to bounce back from multiyear lows. Since March 18, oil has rallied 36 percent, helping boost the likes of Exxon Mobil and Chevron.
According to one trader, the larger energy names can expect to see a rebound down the road.