Energy Stocks Poised for Gains This Spring on Strong Fundamentals and Seasonal Tailwinds
• Energy stocks have strong fundamentals like solid valuations and earnings revisions that beat all S&P 500 sectors in March.
• The sector recently broke out above crucial resistance levels, with technical indicators pointing to around 20% more upside.
• Seasonality favors energy stocks in April-May during the run-up to summer driving season.
• Geopolitical conflicts and OPEC supply cuts will continue driving oil demand and prices higher.
• Energy stocks may offer portfolio protection against inflation and rising interest rates.