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Power Play: Now is not the time to buy energy stocks

Oil pumps wells Monterey Shale fracking
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WTI crude has rallied about 20 percent since late August, but this does not mean it's time to buy energy stocks.

Wells Fargo Securities Institutional Equity Strategist Gina Martin Adams tells CNBC's "Power Lunch" on Wednesday investors should hold the energy sector as a market weight in portfolios.

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"While we remain hopeful that the worst is past for the energy sector, we continue to believe it unlikely that the sector will lead the index for more than a short-term bounce," Adams said.

She is concerned that the momentum in oil is not due to improving demand.

"Global growth estimates are still falling. Likewise, energy sector earnings revisions are taking another leg down and the dollar outlook may continue to impede energy stocks' relative progress," Adams said.

WTI is down two percent during trading, while Brent is down one percent.