"Wall Street" shows a strong optimism about falling energy stocks

Analysts at Wall Street are very optimistic about the shares of oil and gas businesses, powered by low market judgments and encourage President Donald Trump, enthusiastic about the energy sector, who has problems. The energy sector acquires the highest percentage of shares classified by the recommendation of ‘purchase’ among the eleven sectors listed in the ‘Standard & Poor’s 500’ index, as the settings recommended the purchase of about three out of four shares in this sector, compared to only half of the shares in the broader market, according to the data. Analysts who sell their research or recommendations for investors expect the shares of energy companies to rise by about 16% during the next twelve months, which is the second highest percentage to the healthcare sector and about twice the average expected growth of the entire index. Although the energy stocks are only of three sectors within the index still in the negative area this year, they seem to be prepared to bring about more ascension. Trump promotes the energy sector The energy sector is the cheapest between the Standard & Poor’s 500 index based on the price double to profits, while Trump still plays the role of the most prominent fan of the industry, and calls for companies to “drill”. “Some investors believe that profitability complications and market assessments are very low,” Roth Capital Partners analyst Leo Mariani said in an interview. The energy sector is expected to record the highest growth rate of profits among all sectors in 2026, according to “Bloomberg Intelligence”. Despite optimism, it remains that investors show doubt on the optimistic view of “Wall Street”. The prices of US crude oil have fallen around 7% since the beginning of the year, influenced by the effects of Trump’s trade war, and the efforts to reduce the reductions reduced. The sector also does not have momentum, as the performance of energy stocks over the past five seasons is due to the market performance. Expectations of the low profits of energy businesses, “BMO Markats”, will expect the profits of energy -producing companies in the United States on a quarterly basis, and that cash flow will fall by about 15% in the same period as a result of poor oil prices, according to analyst Philip Yongworth. Mariani asked from “Ruth Capital”: “Is there a strong catalyst that can change this reality within the next twelve months? I’m not sure there’s something very clear,” adding that the appetite of investment institutions to the sector is still weak. He also pointed out that his price forecast for the sector’s stock is often less than the estimates of many analysts in “Wall Street”. However, there are justifications that lead you to think about investing in energy companies, including their historical record to protect investors from inflation. It was the best stock for performance in 2022, when consumer prices in the United States were a sharp rise. A hedging function can return to the interface, amid fear that the customs duties that Trump intends to impose will lead to high prices in the coming months. In addition, the Project of Expenses proposed by Trump, which canceled the incentives designated for renewable energy and granted some privileges to oil and gas producers, although it has not yet been translated an immediate increase in the energy sector shares. Michael Casper, chief supply of the “Bloomberg Intelligence”, says the analysts in Wall Street may be waiting for extra movements by the White House. “Trump has been promoted as a president who will support energy producers in the United States,” Kasper added in an interview.