Investors should look to energy stocks as stubborn inflation weighs on the stock market amid growing anxiety over whether the Federal Reserve will cut interest rates at all this year, according to Wolfe Research. "This inability to adequately tame inflation of course coincides with the reacceleration of Oil and Energy stocks over the past few months," analysts Rob Ginsberg and Read Harvey told clients in a Monday note.
The Wolfe analysts said investors should take advantage of any near-term overbought consolidations and make a play for the stock to rise back into the mid $40s. EQT was last trading at $40.92, up 5.8% since the start of the year. The energy sector is gaining as a suite of bad economic data weighs on the broader market. Inflation rose 2.8% in March over the year-ago period as U.S. economic growth slowed to 1.6% in the first quarter.