Just Knocked Down a Few Pegs

I was struck recently at how disparate the fortunes of various sectors have been so far in 2012. On the one hand, Technology and consumer discretionary stocks have posted healthy gains so far this year, rising by 10% or more. Other corners of the market have been less fortunate: the Energy Select Sector SPDR (XLE), for instance, has fallen by about 5% in 2012, putting it at the back of the sector pack.

As I'm handicapping the race for the remainder of 2012, I like this horse that's drifted to the back as a result of fading interest from investors. The XLE was recently trading at a forward price-to-earnings multiple of only about 10x. By comparison, the Consumer Discretionary SPDR (XLY) has a forward P/E of about 15x, and the broad-based SPDR S&P 500 (SPY) is going off at about 12.5x forward 12 months earnings. In other words, energy stocks are trading at a meaningful discount to their peers in the consumer discretionary sector, and well below broad-market multiples....331 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.