Energy stocks are having their best day of the year — Here are Wall Street's best buys from here

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Energy stocks, one of the worst-performing sector this year, spiked on Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.

are all climbing more than 10% on Monday as these heavily shorted stocks experienced "a large short cover bounce," Gruber said.

"Long cycle offshore activity should see less of an impact unless the outages/geopolitical risk premium sustains for an extended period while structural oversupply likely remains," Gruber said. "Thus the bounce in the offshore drillers could fade before other sub-sectors."among drillers as it's already "well positioned" with a possible asset sale by year-end before the positive impact from higher oil prices, Singer said. Kosmos Energy is up 9% Monday.

"We also see a positive set up into the company's November analyst day given robust free cash flow at a lower crude environment," Singer said.may have "disproportionate stock reactions" given its elevated leverage, he noted. Its stock jumped 9% Monday.Refiners took a hit from the Saudi attack as many U.S. facilities depend on heavy crude supplied by countries including Saudi Arabia.

 

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