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发帖数: 2317 | 1 The energy sector has been hammered as oil prices hover near multiyear lows,
but Morgan Stanley is pretty darn bullish.
Chief U.S. Equity Strategist Adam Parker says energy remains one of his team
's top recommendations, although they did reduce their position in the
sector by 1 percent at the start of this month.
Still, energy remains at the top of their buy list, per the chart below.
So what's the energy thesis?
Parker and his team cite four key reasons to buy, supported by four charts.
The first is that the sector has historically reversed after "extreme
downward movements," such as the ones we've seen as of late.
Adding to that, Parker says the sector typically hits a trough two months
before revisions do.
That means analysts will continue to revise earnings downward for another
two months after the sector actually hits bottom.
The third reason is that valuations are sitting at rather compelling levels,
according to Parker.
He includes a chart showing the energy sector's price-to-book ratio since
1990. It's now hovering at multidecade lows.
Lastly, capital spending has been falling with rig counts declining, which
he says is "fueling the dream that oil could be higher by 2017."
Morgan Stanley isn't alone in this call. Such well-known investors as Carl
Icahn have also been betting on a rebound. Of course, it's worth noting here
that oil analysts tend to be an optimistic bunch.
More from Bloomberg.com: The Fed Is on Thinner Ice Than It Realizes, and It
May Be Setting Us Up for Recession
Bloomberg News reports today that in June of last year, analysts as a group
predicted oil would average about $100 a barrel this quarter, and the most
pessimistic called for $84, instead of the low $40s it’s currently
languishing at.
Place your bets.
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Read Morgan Stanley Has Four Reasons to Buy Energy Stocks on bloomberg.com
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