“At nearly 28 times forward earnings, the sector’s forward price-earnings ratio is significantly above the second most richly priced sector, consumer discretionary. Its trailing price-to-earnings ratio is 33 times, second only to real estate among the 11 sectors,” reports CNBC.

Valuation concerns for the energy sector come even as the sector is featured prominently in an array of value ETFs. However, the sector looks more like a value trap than a legitimate value play over the near-term.

Rig counts have recently ticked higher and with credit and earnings issues improving for some U.S. shale drillers, those companies may seize the opportunity to exploit higher pricing in the near-term. Some traders are not convinced and caution about betting on an energy sector rebound.

“Oil being low is just a symptom, to me, that energy may have a little bit of mean-reversion trade, but long term, faces massive secular risks. It’s just under assault from technology on every single level. And I think energy, in a lot of ways, is in a very disruptive phase right now,” said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, in an interview with CNBC.

For more information on the oil market, visit our oil category.