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Energy stocks remain cheap even after a sharp monthly rally
The sector’s strength has coincided with a jump in oil prices tied to Iran war fears, but analysts say the valuation story extends beyond that geopolitical shock.
Energy stocks have posted a strong run over the past month as oil prices have risen amid fears of an Iran war, helping lift the sector.
MarketWatch notes that while the Middle East conflict is part of the catalyst for the rally, it is not the only factor behind why energy stocks continue to look attractive based on valuation.
The outlet frames the sector’s pull as broader than the immediate geopolitical driver, implying investors are still weighing longer-running reasons the stocks may trade at lower levels than peers or history.