Energy Select Sector SPDR Fund [XLE] Stock Forecast

Full allocation to the energy sector using XOP and XLE is recommended. We are forecasting a gain of 40% to 50% for XOP, and similar gains for XLE, over the next nine months. Large amounts of "put buying" in energy stocks, plus other indicators of bearish investor expectations, suggest oil stocks are finally ready to break out with a large price increase.

Midstream ETFs have generated attractive returns for investors but remain a compelling investment opportunity in the current environment. Midstream has been the top-performing segment in the energy sector year to date, strengthened by its defensive qualities, M&A activity, and positive dividend announcements.

Energy stocks, including the Energy Select Sector SPDR® Fund ETF, have been weak recently and are likely to remain so. The XLE ETF is not a diversified fund and is heavily reliant on energy prices, which are currently weak. The two largest holdings in XLE, Exxon Mobil and Chevron, are not cheap enough to warrant investment in the fund.

The price of WTI and Brent crude fell despite another production cut from OPEC. The cut was expected and helps keep the oil market in a tight balance, so this looks like a buy-the-rumor-sell-the-news event.

Instead of investing in a broad sector ETF, investors may be able to enhance portfolio returns by being more selective with their energy exposure. MLPs have handily outpaced other energy subsectors in 2023 to date, strengthened by midstream's defensive qualities, M&A activity, and positive dividend announcements.

Billionaire investor Warren Buffett is known for his winning investing style.

Launched on 12/16/1998, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.

Energy stocks are likely striking important lows now. The sector is viewed as strong from a long-term fundamental perspective, with good valuations and strong balance sheets.

The U.S. crude oil market is currently experiencing a complex interplay of increasing supply, decreasing demand, and speculative influences.

Michael Gayed predicts a credit event in the market and warns of longer-term concerns around U.S. debt trajectory. He discusses the disconnects in the AI mania and inter-market dynamics.

Energy Select Sector SPDR Fund is a US stock and trading under the symbol XLE

Energy Select Sector SPDR Fund stock price is $82.23 today.

Yes, Energy Select Sector SPDR Fund is a publicly traded company.