{"id":27932,"date":"2026-07-02T07:30:00","date_gmt":"2026-07-02T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=27932"},"modified":"2026-07-01T14:03:06","modified_gmt":"2026-07-01T18:03:06","slug":"what-you-should-be-doing-about-energy-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/what-you-should-be-doing-about-energy-stocks\/","title":{"rendered":"What You Should Be Doing About Energy Stocks\u2026"},"content":{"rendered":"\n
\n

Managing Editor\u2019s Note:<\/strong>\u202fToday, we\u2019re hearing from our contributing editor Mike Burnick in his weekly feature.<\/p>\n

Mike has over 30 years in the investment and financial services industry \u2013 from operating as a stockbroker, trader, and research analyst, to running a mutual fund as a registered investment advisor and portfolio manager, to being Research Director for the Sovereign Society, specializing in global ETF and options investing.<\/p>\n

\u202fAnd he\u2019s been senior analyst at TradeSmith for three years, running Constant Cash Flow, Infinite Income Loop,\u202fand Inside TradeSmith.<\/p>\n

Here\u2019s Mike\u2026<\/p>\n<\/div>\n\n\n\n

What You Should Be Doing About Energy Stocks\u2026<\/h2>\n\n\n\n

BY MIKE BURNICK, CONTRIBUTING EDITOR, MARKET MINUTE <\/em><\/strong><\/p>\n\n\n\n

Crude oil just fell over 25% in three weeks.<\/p>\n\n\n\n

So, you might think energy stocks are toast. But don\u2019t count them out just yet.<\/p>\n\n\n\n

Sure, the S&P 500 Energy Sector ETF (XLE) also dropped about 10% in recent weeks, but that was after posting spectacular gains earlier this year.<\/p>\n\n\n\n

Energy stocks are still holding on to most of those gains.<\/p>\n\n\n\n

You may be surprised that energy stocks are still<\/em> up 19.5% year-to-date, even after the recent drop. This outperforms the tech sector, which is up 14.5%.<\/p>\n\n\n\n

You\u2019ll probably be even more surprised to hear that earnings growth for energy stocks at +51.2% is likewise beating tech sector profit growth (40.4%) by a wide margin.<\/p>\n\n\n\n

That tells me energy stocks have the staying power to keep outperforming, despite lower oil prices.<\/p>\n\n\n\n

And your best bet when it comes to energy is to think small-cap over large.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

As you can see above, small-cap energy stocks are outperforming XLE by a comfortable margin over the past year.<\/p>\n\n\n\n

And both are far ahead of the S&P 500 gains year-to-date.<\/p>\n\n\n\n

It\u2019s not Exxon and Chevron that are leading the sector, it\u2019s the faster-growing small-cap energy stocks.<\/p>\n\n\n\n

With that in mind, here\u2019s how I use our TradeSmith Screener tool to scan the market for healthy, small-cap energy stocks.<\/p>\n\n\n\n

<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

TradeSmith members have easy access to our Screener by navigating to the Invest<\/em> tab, then simply clicking on Screener<\/em> as shown above.<\/p>\n\n\n\n

I clicked on +Add Filters<\/em> to start narrowing my search by adding three simple screener filters.<\/p>\n\n\n\n

    \n
  1. I added a filter for Health (Short-term)<\/em> found under TradeSmith Proprietary Metrics<\/em>, and I clicked on Green<\/em> and Yellow<\/em> Health as shown.<\/li>\n\n\n\n
  2. I click on Markets & Classification<\/em> and add filters for Markets<\/em> and for Sectors<\/em>.<\/li>\n\n\n\n
  3. For Markets<\/em>, I selected S&P 600 (SML)<\/em>, and for Sectors<\/em> I selected Energy<\/em>.<\/li>\n<\/ol>\n\n\n\n

    Now I\u2019m set to search our database for healthy, small-cap energy stocks with this simple Screener.<\/p>\n\n\n\n

    In my column last week<\/a>, I briefed you about our Health Indicator<\/em> system that features three color-coded health states: Green, Yellow, and Red.<\/p>\n\n\n\n

    Recall that yellow is still considered healthy. In fact, stocks in this zone have pulled back from recent green zone highs. These can be excellent buy-the-dip<\/em> stocks.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    When I ran this Screener earlier this week, I got 20 results. The top five stocks are shown above due to space limitations.<\/p>\n\n\n\n

    All five stocks are in the long-term green category. Two stocks are short-term health yellow, which means they\u2019ve recently pulled back, and the other three are green.<\/p>\n\n\n\n

    Bottom line<\/em><\/strong>: This simple TradeSmith Screener is a great way to zero in on faster-growing small-cap energy stocks that may be well positioned to keep outperforming the market.<\/p>\n\n\n\n

    Good investing,<\/p>\n\n\n\n

    \"Signature\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Mike Burnick
    Contributing Editor, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Energy stocks are still up 19.5% year-to-date, even after the recent drop.<\/p>\n","protected":false},"author":2762,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7,155],"newsletter-type":[],"ticker":[],"class_list":["post-27932","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark","person-mike-burnick"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_content_changed_at":"","ai_tts_content_changed_during_generation":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/27932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/2762"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=27932"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/27932\/revisions"}],"predecessor-version":[{"id":27938,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/27932\/revisions\/27938"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=27932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=27932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=27932"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=27932"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=27932"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=27932"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=27932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}