Energy stocks poised for a comeback?

By Covestor

In case you haven’t noticed, the S&P 500 Index is outperforming almost every investment style through November.

As shown in the following heat map, the only styles that have beaten the S&P 500 (as of the end of November) are large cap core and large cap growth.

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S&P Shines

In November,  the S&P has earned 3%, while large core has returned 3.7% and large cap growth has shined with an 11% return.

The total U.S. stock market has returned only 1.7% over the same period.

Drilling deeper, we see a wide range of performance across style-sector subsets.

Tech Stocks

Within large cap growth, 3 sectors have earned more than 25%: consumer discretionary, technology and utilities-and-phones.

By contrast, most styles in the energy sector have lost more than 25%.

So will December bring more of the same or reversals?

I see possible shifts.

Energy is beaten up enough, and P/Es of large growth stocks are now around 33 as of the end of November, according to my research.That’s 60% higher than the S&P 500.

Happy hunting in 2016.

Photo credit: Martin Burns via Flickr Creative Commons//

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The post Energy stocks poised for a comeback? appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.