If there is one sector making the most out of rising commodity prices, it has to be the energy sector. Thanks to rising demand amid various supply constraints, prices for crude oil and natural gas have surged. This has directly benefited the sector’s bottom lines and sent share prices moving higher. Turning the once “left for dead” sector into this year’s biggest winners.
And despite the gains, the energy sector may still be a bargain.
With better-than-expected earnings, still elevated commodity prices and low costs of production, the energy sector has a lot to like. For investors, there are still plenty of gains to be had even if the economy begins to slip.
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