Energy stocks have rallied amid a kink in global supplies — 'there is plenty of upside remaining'

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Energy stocks are an inflation hedge, and that’s not the only reason to buy them amid soaring crude oil prices. Here are a few picks by columnist mbrushstocks.

Energy stocks have seesawed this week as conflicting news of increased supply courses through commodity oil and gas prices.

“That spread is too wide,” says Thummel, who has a good perspective because he has covered the energy sector for three decades. JP Morgan energy analyst Natasha Kaneva is more conservative, predicting Brent will average $110 per barrel in the second quarter, and then $90 to $100 in the second half of the year. But that is still way above the $65-$75 per barrel oil price embedded in energy stock valuations.

4. Insiders are buying I’ve tracked insiders every day for over two decades, to gather insights for this market column and for my stock newsletter Brush Up on Stocks . Typically, insiders go against the crowd. They step up their buying when the market or a sector are weak. Insider buying dries up in strong sectors. The energy sector is up over 30% this year. Yet, we still see insider buying, which is a bullish signal for the group.

 

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