The performance of the S&P Energy sector has been disappointing despite 2019 being a banner year for the S&P 500. Over the trailing twelve months (as of January 10), the S&P 500 Energy sector was down 1.26% against a 26% gain for the broad index.
Energy is made up of two industries: Oil, Gas, and Consumable Fuels (but please don’t drink them) and Energy Equipment and Services. Equipment and Services is suffering the worst at -8.08%. If you love underdogs, the stocks in this industry are barking their lungs out.
Before buying any of these, carefully consider whether your choice is beaten down due to a factor that’s likely to reverse (oil prices, geopolitical headwinds) or whether it’s permanently impaired through poor management or competitive disadvantages.
This week’s stock screen features stocks that
- are in the Oil and Gas Equipment and Services industry
- have market caps of more than $1 billion
- have free cash flow growth at or above zero, and
- aren’t ADRs
BetterInvesting Weekly is the free e-mail newsletter from the editors of BetterInvesting Magazine. Each issue features timely investing news, articles and a stock screen to help subscribers identify quality growth companies for further study.
To start receiving free stock screens in your inbox, subscribe to BetterInvesting Weekly HERE.
Companies listed are for educational purposes only. No investment recommendations are intended.