Still, bearish bets on energy shares have climbed, with investors remaining leery of owning them. The aversion contrasts with the industry’s improving outlook – a setup that will allow valuations to expand and catch up with fundamentals in a process known as re-rating, according to Lakos-Bujas and his team.
At the start of 2021, Dubravko Lakos-Bujas was one of the rare bulls on energy stocks. After a surge of almost 50% for the shares, the JPMorgan Chase & Co. strategist says the rally has further to go.
Oil and gas producers are among the best performers in the S&P 500 this year, with companies such as Devon Energy Corp. and Marathon Oil Corp. more than doubling.
