Oil's Bottom Beckons

Related: Top 34 Oil ETFs

The energy sector is inexpensive on an absolute basis and trades at multi-year discounts. The sector trades at its largest discount to the S&P 500 in over two decades.

“Energy stocks under-performed spot oil prices at the beginning of the selloff but recently have declined only about half as much,” said BlackRock. “Yet we believe the recent price reset may offer an attractive entry point as capital discipline and balance sheet management remain priorities for many energy companies.”

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