XLE: Cash Flow Will Remain Strong, But This Earnings Cycle Is Likely Ending
Understanding economic and business cycles is crucial for investing; secular trends often outweigh basic economic cycles in importance. I am downgrading XLE from 'Strong Buy' to 'Hold' due to expected declines in Brent Crude Oil prices and increased energy supply. Energy Select Sector SPDR Fund's performance has been strong, but with plateauing profits and a modest 3.28% yield, future returns may disappoint investors.
Should You Invest in the Energy Select Sector SPDR ETF (XLE)?
Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund launched on 12/16/1998.
XLE vs VDE: Which Energy ETF Is a Better Buy Today?
Passive investors looking to take on a more contrarian position in the new year may wish to consider some of the sectors that most investors may be ignoring as the rise of the artificial intelligence (AI) boom continues.
The Big 3: AVGO, XLE, NKE
As A.I. stocks rally on news of the Stargate project, @Theotrade's Don Kaufman's stays bullish on Broadcom (AVGO) due to its ability to ride on co-tails of leaders like Nvidia (NVDA). He later breaks down his bullishness in Nike (NKE) and bearishness in the energy sector (XLE).
ETFs to Watch as Trump Heads to White House Again
Donald Trump is set to be sworn in as the 47th president of the United States today. The new administration is expected to bring a wave of policy shifts.
Final Trade: XLE, PANW, XHB, BMY
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
ETF inflows top $1 trillion in 2024. What comes next in 2025?
Investors poured over $1 trillion into exchange-traded funds (ETF) in 2024, with single-stock ETFs showing some of the highest annual returns. Clough Capital President and CEO Vince Lorusso — whose firm manages the Clough Select Equity ETF (CBSE) — appears on Wealth to analyze this trend and where he envisions strong ETF inflows to continue throughout 2025 and beyond.
Should You Invest in the Energy Select Sector SPDR ETF (XLE)?
Launched on 12/16/1998, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.
XLE: Mind The Gap Between Oil Stocks And Oil Prices
The XLE ETF, dominated by Exxon and Chevron, has decoupled from WTI crude oil prices over the past 18 months, suggesting a potential profit-taking opportunity. At current oil prices, the P/E ratio may rise to over 20x over the next 12 months, which would be expensive for a sector that is barely growing. Investors are likely to be better off buying oil futures rather than the XLE, as the current ratio implies negative excess returns over the coming years.
XLE: Trump SPR Refill And Geopolitical Risk Point To Oil Rally In 2025
Although incoming President Donald Trump aims to increase oil drilling, his incoming administration can do little to improve US oil production, given today's low prices. If Trump rapidly increases strategic petroleum reserve inventories, however, the US may see an increase in oil demand of 1-2M barrels per day in early 2025. The lower US rig count and stagnant drilled-but-uncompleted well inventories indicate stagnant or negative US production changes in 2025, though demand is also stagnant.
XLE: The Sector Has Not Performed Well In Recent Interest Rate Cut Cycles
The oil and gas sector has averaged a -1.5% return in recent rate-cutting cycles, underperforming other cyclical and defensive sectors. XLE trades above its 3-year historical average in both P/E and EV/EBITDA, implying a 17% downside to fair value. Despite potential risks, historical data and current valuation support selling XLE, with a fair value estimate of $75.
Should You Invest in the Energy Select Sector SPDR ETF (XLE)?
Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund launched on 12/16/1998.
