S&P 500 Energy Sector Undervaluation

"Semiconductor selloffs stopped dragging the S&P 500 this year. I don't think chip volatility is a threat to the broad market anymore. On July 28th the SOX fell 4.5% and the equal-weight S&P 500 ETF set a record high the same day."

"With six of eleven S&P 500 sectors down, energy stocks rose alongside oil prices."

"XEL stock has returned 5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.5%. The stock has continued to trail the benchmark in 2026, rising 4.2% year to date versus the index's 12.6% gain."

"Occidental Petroleum has outperformed relative to the SPX due to its low-cost Permian Basin operations, rising oil prices, and strong exposure to high-return drilling assets."

"Market prices may still be elevated, but there are plenty of opportunities for investors to find value in today's market... Yet there are plenty of bargains still to be found in the broader market."

"Berkshire Hathaway presents a compelling investment opportunity where the market's fixation on the departure of legendary investor Warren Buffett from the Chief Executive position has obscured the underlying strength"

"TITLE: The Stock Market Is Not Overvalued, Yet"

"I'd say that the market (specifically the U.S. market) isn't as overvalued as it looks on the surface. And, in that regard, I find an S&P 500 ETF to be an absolute staple for a Canadian investor's portfolio, especially those who are TSX-heavy, with limited exposure to the AI innovation south of the border."

"Regarding market strategy, Wren expects Information Technology to remain 'more attractive from a valuation perspective' than the Energy sector."

"The index is trading at under 20 times expected earnings, its lowest earnings multiple in 10 months, according to LSEG data."