Energy stocks zoomed higher in the first quarter, but they have recently given back much of the gains. I still like them, though, and there is an interesting way to gain exposure – the Westwood Salient Enhanced Energy Income ETF (WEEI)
Energy stocks posted strong share price gains as crude oil soared after the closure of the Strait of Hormuz. From late February to early April, crude oil futures went from $65 per barrel to a peak of $115 per barrel. Since mid-May, oil has fallen from $108 to around $70 per barrel.
Westwood Salient Enhanced Energy Income ETF (WEEI)
The highest crude oil prices occurred during the second quarter of the year. That quarter just closed out, and energy companies will start reporting Q2 earnings in a few weeks. It is possible that when investors see actual earnings, they will decide that the energy stock sell-off was overdone.
Consider Exxon Mobil Corp. (XOM). For the 2025 fourth quarter, XOM reported earnings of $1.71 per share; for the first quarter, earnings were $1.16 per share. The company will report earnings on July 31, and the Wall Street consensus estimate is $3.74 per share in earnings — 200% higher than the first quarter results. Quarterly earnings are forecast to stay above $3 for the rest of the year.
WEEI owns XOM and several other energy stocks. As for its “enhanced income,” WEEI pays a 12% yield. I also hope to see a nice pop in the share price as Q2 earnings come out.
Recommended Action: Buy WEEI.
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