Energy: Oilfield Services Particularly Compelling
The sector overall is cheap, but oilfield-services stocks are at decade lows.
After rebounding in the first quarter, the Morningstar U.S. Energy Index sank in the second as oil prices ended the quarter roughly where they began. The Energy Index slipped 6% in the quarter to date through June 25 compared with a 3% gain for the Morningstar U.S. Equity Index (Exhibit 1).
Global energy index vs. global equity index - source: Morningstar Analysts
Jeffrey Stafford has a position in the following securities mentioned above: SLB. Find out about Morningstar’s editorial policies.