Energy: Investment Outlook & Factor Analysis
Data-driven analysis of 253 stocks · Updated automatically from our 6-factor model
Sector Overview
The Energy sector encompasses 253 stocks in our coverage universe, with an average composite score of 49.7 out of 100. Of these, 28 stocks (11%) carry Buy or Strong Buy ratings, while 132 stocks (52%) are rated Reduce or Avoid. Our model flags caution for this sector overall — most stocks receive Hold or lower ratings. Selectivity is critical.
Factor Scores: Energy vs. Market Average
Market Concentration
The top 5 stocks in the Energy sector represent 2.8% of the total sector market capitalization. This sector is relatively fragmented, with performance distributed across a wider range of mid and large-cap participants.
Factor Leaders
Valuation SnapshotAttractive
Valuations appear reasonable relative to historical norms, suggesting potential upside for value-oriented investors. The sector trades at a median P/E of 13.7x and EV/EBITDA of 5.2x.
Quality & ProfitabilityModerate
Profitability metrics are mixed. Some companies achieve strong returns while others face margin pressure.
Sector Risk Profile
The Energy sector exhibits a median beta of 0.9, indicating price volatility broadly in line with the S&P 500 benchmark.
