Wall Street stays bullish on US energy stocks despite market challenges

Even as commodity markets struggle in 2025, Wall Street analysts remain optimistic about US energy stocks. According to Bloomberg, approximately 75% of oil and gas firms in the S&P 500 index received a "buy" rating, which is the highest percentage of any American sector. The average projected growth rate of these companies over the next year is 16%.

The energy sector continues to trade at the most appealing valuation based on price-to-earnings (P/E) ratios, and supportive policies from the Trump administration only bolster market optimism. However, investor caution persists due to the 7% decline in oil prices this year, which is driven by ongoing trade tensions and shifts in OPEC+ strategy.

Analysts polled by Bloomberg anticipate a 30% drop in energy sector earnings for Q2 2025. A potential turnaround could hinge on legislative measures favoring traditional energy. Although immediate catalysts for a significant rebound are scarce, the energy sector is likely to surpass all other industries in profit growth by 2026, the news agency notes.