- ORIGINAL NEWS
Oil stocks share a bullish similarity with semis, but ‘no one cares,’ VanEck CEO says
- SUMMARY
Despite the current surge in crude prices, oil stocks are undervalued due to uncertainty in global growth.
This makes them attractive for investors seeking undervalued sectors.
VanEck CEO, Jan van Eck, urges investors to consider these shares, emphasizing their solid cash flow and double-digit yields.
Currently, the VanEck Oil Services ETF, with holdings like Schlumberger, Halliburton, and Baker Hughes, has underperformed the S&P 500 this year.
However, the recent gains in WTI crude suggest a potential turnaround for oil stocks.
Strategas’ Todd Sohn believes that, if tech stocks experience a dip, more investors might rotate into sectors like energy and healthcare.
Given the undervalued nature of oil stocks and the positive movements in crude prices, they are worth considering for investment.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“According to VanEck CEO Jan van Eck, oil stocks are getting a raw deal.”
“‘They’re trading at double-digit cash flow yields for E&Ps [exploration and production] and sectors in the oil market.'”
Negative
“The ETF is down almost 7% so far this year, and it’s off more than 9% percent over the past 52 weeks.”
“It’s [energy] underperforming a lot of other things, but not really badly considering the driver for global growth is really on its back right now and could be for a couple years,”