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Reuters


Energy shares rebound as bargain-hunters swoop in

Some stocks in the energy sector are now quite inexpensive compared with the S&P 500 universe. ConocoPhillips, Chevron Corp and Exxon Mobil Corp all have forward price-to-earnings estimates between 10.2 and 11.4, according to Thomson Reuters StarMine data. The forward P/E on the S&P 500 is 16.1, meaning investors pay 32 percent less for a dollar in earnings in those energy names than on the overall index.

“We’ve definitely hit a value area in the energy sector,” said John Kosar, director of research at Asbury Research in Chicago.

“What is missing is that initial flow of assets back into the sector, which basically makes the bottom happen and starts the new trend.”