The Energy Blues

An observation I gleaned from my copy of Investor's Business Daily (IBD) is that energy stocks are still the unpopular cousin of the stock market. As was the case when I conducted this little exercise back in December, the energy space had more stocks with single-digit ratings for price and earnings momentum that the rest of the sectors combined. I know oil prices have been weak for the past few days and natural gas has corrected from its attempt to push higher last autumn, but many of these stocks are trading like no one will ever use the stuff again.

Let's take a look at the bigger energy picture. The world's economy will eventually recover and energy demand will rise again, spurring higher crude oil prices. Low natural gas prices and an abundant supply is going to cause the U.S. to look harder at using it to generate more electricity, power more plants and even run our automobiles, buses and trucks. Even coal will see increased demand despite ecological concerns. From a long-term point of view, energy demand will pick up and the companies that produce it will have far more value than is reflected in the current stock prices....524 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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