As 2016 comes to a close, CNBC PRO used fundamental analysis to find the stocks that are primed to rally the most on President-elect Donald Trump's pro-growth policies.
This time we highlight the energy sector, which continues to be among the favorite groups with major Wall Street firms.
"Next year, the key sector is energy given that it is expected to contribute ~40 percent of S&P 500 revenue growth," JPMorgan U.S. equity strategist Dubravko Lakos-Bujas wrote in his 2017 investment outlook.
Along with JPMorgan, a number of research houses predict that a recovery in the oil market, improving earnings and increased emphasis on deregulation, could take the sector higher.
Our study looks at the shares Wall Street analysts are most bullish on for the next 12 months.
We first identified energy companies that strategists say will benefit from Trump's policies. These names have strong balance sheets, above-average cash flows and could benefit from higher commodity prices.
Among those companies, we then found the ones that have shown positive momentum since the election.
As a last step, we used analysts' 12-month price targets and ratings to identify the stocks with the most upside potential from the current levels.