Oil stocks and related exchange traded funds have been among the best performing area over the past few months, and the sector may still see continued forward momentum.

The Energy Select Sector SPDR (NYSEArca: XLE) has gained 11.2% over the past three months and is up 13.2% year-to-date. In comparison, the S&P 500 Index is up 8.6% over the past three months and rose 8.1% this year.

Matarin Capital Management’s Nili Gilbert argues that energy picks may maintain their momentum as a way to hedge inflationary pressures, reports Cassandra Jaramillo for CNBC.

“We think energy is a good investment, not only because of our positive outlook but also because of the rising prices generally,” Gilbert said.

Gilbert, though, tries to steer away from global regions as a way to avoid geopolitical risk.

“We like companies operating in stable regions like the U.S, Canada and Norway,” the analyst said.

Additionally, investors may want to focus on oil players instead of natural gas producers in the energy sector.

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