While energy stocks will likely struggle to match last year’s blowout performance, a recent crude bounce may be setting the wheels in motion for the sector to regain a leadership spot, say some strategists.
Oil prices CL.1, -0.06% rose for a third straight month in August, thanks to tighter supplies that outweighed worries over weak China and overall energy demand. A so-called golden cross pattern also has some technicians optimistic about a move higher for the commodity. With a year-to-date percentage gain of 2.8%, the S&P 500 energy sector XX:SP500.1010, which includes heavyweights such as Chevron CVX, +1.99% and Exxon Mobil XOM, +2.10%, is about the sixth-best performing sector, though well behind the 44% return seen for information technology. Down 11.