Not surprisingly, the energy sector, the worst performer in the S&P 500 last year, is expected to be an earnings season disappointment.
“The Energy sector currently has the highest number (14) and the highest percentage (33%) of companies with a Sharp estimate below the mean EPS estimate for the third quarter. At the sub-industry level, 11 of these 14 companies are in the Oil & Gas Exploration & Production sub-industry,” notes FactSet.
Several of those 14 companies dwell in the Energy Select Sector SPDR (NYSEArca: XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEArca: XOP), ETFs that lost 8.7% and 29.4%, respectively last year.
Even with the energy sector’s struggles, investors poured $2.1 billion into XLE last month, a sign energy’s valuations (the lowest in the S&P 500) are compelling investors to nibble at the group.
Energy Select Sector SPDR
