Here MarketWatch offers a timely look at the brightening oil-stock scene. Among the 36 energy stocks in the benchmark S&P 500 Index, 16 were up at least 10% on Wednesday.
So now the question is, how much higher can they go?
With OPEC’s action, a revised 3.2% GDP growth rate for the U.S. economy in the third quarter and an ADP report showing 216,000 net jobs added during November, a roaring economy could provide strong support for higher oil prices.
The potential for another $10 increase in the price of oil, along with all the positive economic indicators, should prompt analysts to raise earnings estimates and price targets for oil companies. After all, during periods of market turmoil, analysts try to “get ahead” of the wave. So we may still be in an early period for the oil-stock rally.
In our free weekly email and at Richard C. Young & Co. Ltd. (sign up for the advisory client letter, free even for non-clients, by clicking here), the entire energy sector receives special focus for retirement planning investors.