Energy had a record year in 2022, but it is still a great place to put your money to work in 2023, as drivers of last year's performance are intact. The sector had the best earnings growth by far in the S&P 500 in 2022. While this will slow in 23, supply dynamics and margins are bullish. The Energy sector has changed over the years to be more shareholder friendly. Valuations and capital policies are both attractive. The market seems to have assigned too low of a terminal value to Energy. Hurdles to renewables will continue throughout 2023.
Why XLE Is My Top Pick For The (Still) Cheap Energy Sector
