JPMorgan calls energy stocks 'highest conviction' trade, sees rally continuing

A self-elevating drilling platform, or jack-up drill rig, is seen at a shipyard of Cosco (Nantong) Shipyard Co., Ltd before being delivered to China Oilfield Services Limited (COSL) on July 13, 2021 in Qidong, Nantong City, Jiangsu Province of China.
Xu Congjun | Visual China Group | Getty Images

Energy stocks are far and away the top-performing S&P 500 group this year, and yet JPMorgan believes the trade is just getting started. The firm reiterated its bullish stance Thursday, calling the sector its "highest conviction" overweight recommendation.