Price Alert: Shares Of Energy Stocks Are Trading Higher Amid A Rise In Oil Prices After Iran Launched A Missile Attack On Israel

Energy stocks such as ExxonMobil and Chevron are surging due to rising oil prices amid geopolitical tensions.

Transcript

00:00I think we got it. I hate to go back to the Middle East situation here, but nothing moves

00:05more off the Middle East uncertainty than oil. And you've had a big move here in crude oil

00:13just over the last two days. So let's talk some oil stocks here.

00:19I mean, all of them just moved together. So you don't even have to talk to them individually,

00:22just talk XLE because it covers everything. I mean, we're moving up here again. Chevron,

00:27Exxon are like 40% of the XLE or something crazy like that. Conoco,

00:32Oxy, just pick your stock and they're going. Now, if escalations de-escalate, does oil get hit back?

00:40Maybe. One thing to consider with oil stocks though is the valuations are dirt cheap here too.

00:45Not saying it's another China trade, but when you have story coupled with ridiculously cheap

00:51valuations, these stories can move a lot longer than you think. And most of these oil stocks,

00:57let's just go to our trusty Benzinga Pro here, AB. I mean, when you have stock trade 10, 11,

01:0312 times earnings and all of a sudden they have a story, you see violent short squeezes, you see

01:08people jumping in, you see chasing, you see a lot of things like that. Right now we got escalation

01:14still happening. We haven't seen any de-escalation. If you think Israel is not going to retaliate,

01:20of course they're going to retaliate. This is what they do. They're going to retaliate.

01:23I mean, it's hard to just end these things. It's like, okay, they were one and done.

01:30They threw some missiles at us. Okay. It's okay. We're just going to call a peace treaty now. It's

01:34probably not going to happen. So if you're short in oil saying, well, this is just, we know it's

01:39going to go back down. It's like short in China right now. You got a hot story and cheap valuations

01:44and that is dangerous for sure. Yeah. That CVX has a nice dividend too.

01:50ExxonMobil made that big acquisition of Pioneer and maybe it took a while, but maybe get some

01:59synergies. This is right back at almost at all time highs here and relative to the price of oil,

02:07it's really a strong outperformance. Oxy, boy, I haven't heard anything about Warren,

02:14but Oxy's getting a nice boost up here, looking to move over that $54 area.

02:22So there, there's a bunch of oil stock.