5 Top Stocks From The Best-Performing Sector Of The Market

This year has been a good one for U.S. equities. In the first five months of 2021, the S&P 500 was up 11.9%, while the Dow and the Nasdaq gained about 12.8% and 6.7%, respectively. In particular, the S&P 500 — regarded as one of the finest reflections of the stock market as a whole — not only maintained its northbound journey following a coronavirus-ravaged 2020, but also notched all-time closing highs on a few occasions.

On the sectoral front, it is Oil/Energy that has topped the S&P standings year to date. The space has significantly outperformed the market, with the Energy Select Sector SPDR — an assortment of the largest U.S. energy companies, popularly known by its ticker, XLE — hitting a new 52-week high on Friday, marking a more than 140% jump from its last year’s lockdown lows in March fueled by hopes of a faster demand recovery. To be precise, the energy index generated a total return of 47.1% in 2021 compared to the S&P 500’s 12.6%.

Energy: A Stunning Crash, Then an Incredible Rebound

Taking investors on a roller coaster ride, crude has made a stunning rebound — from the depths of minus $38 a barrel in April 2020 to reclaim a more than two and a half year high of $69.62 a barrel on Friday.

The commodity has spent much of the past few months trading higher on continued vaccine-related developments and their successful deployment around the world, offering hope of an earlier-than-expected pickup in demand. The OPEC+ cartel’s calibrated production policy has also driven up oil. In its recent meeting, member countries of the OPEC+ group — a coalition between OPEC countries under kingpin Saudi Arabia and non-members led by Russia — decided to gradually loosen the output cuts from May through July, reflecting their confidence in the fuel’s demand. Easing coronavirus infections, signs of robust demand in the world’s second-largest oil consumer, China, and the passage of the $1.9 trillion stimulus bill are the other positives in the oil story.

1 2 3 4
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.