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5 Energy ETFs & Stocks That Gained From Rebound in Oil Price

After having worst week since the financial crisis, oil price has shown a strong reversal in the past couple of days on signs of monetary and fiscal stimulus and anticipation of further production cuts.

This is especially true as both crude oil and Brent have gained nearly 7%, the biggest two-day percentage gains for both contracts since prices snapped back after the missile attacks on Saudi Arabian oil facilities in September 2019. Central banks across the globe are likely to enact financial stimulus to prop up the virus-infected economy (read: ETFs at Risk as Oil Slides to 13-Month Low on Covid-19 Scares).

Meanwhile, the Organization of the Petroleum Exporting Countries (“OPEC”) and its allies are expected to announce deeper production cuts at their meeting on Mar 5-6 in Vienna. The group has been cutting output by 1.7 million barrels per day in a deal that runs to the end of March. Now, the OPEC is mulling over a bigger output cut of possibly 1 million barrels per day with or without Russia's support, to halt the slide in crude prices triggered by the global spread of coronavirus. This is more than an initially proposed cut of 600,000 barrels per day.

Given the rebound in oil price, the energy sector enjoyed a huge surge. We have highlighted the ETFs & stocks that gained most in the latest trading session and will continue to head higher with the rise in oil price.

Best ETFs

While these are best performers in the space, they all lag behind the broader markets significantly. Our ranking system takes into account the asset class outlook, which was negative for energy and hence most ETFs in that space had #4 (Sell) or #5 (Strong Sell) ranks.

Energy Select Sector SPDR Fund XLE

This fund provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries by tracking the Energy Select Sector Index.

Zacks Rank: #4
AUM: $8.5 billion
Expense Ratio: 0.13%
1-Day Return: 4.1%

Vanguard Energy ETF VDE

This fund follows the MSCI US Investable Market Energy 25/50 Index (see: all the Energy ETFs here).

Zacks Rank: #4
AUM: $2.7 billion
Expense Ratio: 0.10%
1-Day Return: 2.7%

iShares U.S. Energy ETF IYE

This ETF tracks the Dow Jones U.S. Oil & Gas Index.

Zacks Rank: #5
AUM: $438.1 million
Expense Ratio: 0.42%
1-Day Return: 2.6%

Fidelity MSCI Energy Index ETF FENY

The fund follows the MSCI USA IMI Energy Index (read: Is the Nightmare Over for Coronavirus-Infected Energy ETFs?).

Zacks Rank: #5
AUM: $362.6 million
Expense Ratio: 0.08%
1-Day Return: 2.6%

iShares Global Energy ETF IXC

This product offers exposure to companies that produce and distribute oil and gas by tracking the S&P Global 1200 Energy Sector Index.

Zacks Rank: N/A
AUM: $654.8 million
Expense Ratio: 0.46%
1-Day Return: 2.6%

Best Stocks

Exterran Corporation EXTN


This company is involved in compression, production and processing products and services of the oil and natural gas industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Rank: #3 (Hold)
VGM Score: B
Market Cap: $170.8 million
1-Day Return: 29.4%

Bonanza Creek Energy Inc. BCEI

This company is engaged in the acquisition, exploration and development of onshore oil and natural gas properties in the United States.

Zacks Rank: #3
VGM Score: B
Market Cap: $336.1 million
1-Day Return: 17.2%

KLR Energy Acquisition Corp. ROSE

This oil and gas exploration company produces assets located in Texas and New Mexico and its investment activity will be focused on the Delaware Basin portion of the Permian Basin.

Zacks Rank: #3
VGM Score: B
Market Cap: $34.2 million
1-Day Return: 14.5%

Delek Logistics Partners L.P. DKL

This company owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets (read: 7 Top-Ranked ETFs on Sale).

Zacks Rank: #4
VGM Score: B
Market Cap: $535.4 million
1-Day Return: 12.6%

Abraxas Petroleum Corporation AXAS

It is an independent energy company engaged primarily in the acquisition, exploration, exploitation and production of crude oil and natural gas.

Zacks Rank: #4
VGM Score: A
Market Cap: $32 million
1-Day Return: 12.4%

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Energy Select Sector SPDR ETF (XLE): ETF Research Reports
 
KLR Energy Acquisition Corp. (ROSE): Free Stock Analysis Report
 
Delek Logistics Partners, L.P. (DKL): Free Stock Analysis Report
 
Bonanza Creek Energy, Inc. (BCEI): Free Stock Analysis Report
 
iShares Global Energy ETF (IXC): ETF Research Reports
 
Abraxas Petroleum Corporation (AXAS): Free Stock Analysis Report
 
iShares U.S. Energy ETF (IYE): ETF Research Reports
 
Fidelity MSCI Energy Index ETF (FENY): ETF Research Reports
 
Vanguard Energy ETF (VDE): ETF Research Reports
 
Exterran Corporation (EXTN): Free Stock Analysis Report
 
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Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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