Energy Stocks And The XLE: Outlook For 2026
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Andrew HechtInvesting Group LeaderFollow5ShareSavePlay(9min)Comment(1)SummaryState Street® Energy Select Sector SPDR® ETF is rated a Hold for 2026, supported by a 3.12% yield and attractive P/E ratio.XLE outperformed crude oil in 2025, gaining 7.8% despite a 20% oil price drop, aided by robust sector earnings.XLE's portfolio is over 40% allocated to Exxon Mobil and Chevron, benefiting from U.S. energy policy and stable sector fundamentals.Bearish crude oil trends persist, but U.S. policy, OPEC+ cooperation, and continued fossil fuel demand underpin XLE’s earnings outlook. Nastassia Samal/iStock via Getty Images As markets enter 2026, traditional energy will be a critical economic factor, as oil and gas continue to power the United States and the world. Crude oil prices have declined in 2025, while natural gasThis article was written byAndrew Hecht30.66K FollowersFollowAndrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals. He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You