This year hasn’t been too kind to energy stocks. After rebounding from lows not seen in over a decade, the energy sector has spent much of 2017 in a straight shot downwards. Oversupply problems and a lack of demand have crimped share prices for individual equities as well as the energy exchange-traded funds that track them. The sector proxy the Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) is down about 10.5% year-to-date.
But there’s a few reasons why investors may want to snag up energy ETFs after their recent drop.
For one thing, energy ETFs are one of the few segments of the market that can be had for below their historical norms. Moreover, their cheapest is furthered when looking at higher overall average oil prices. According to S&P Capital IQ, average 2017 earnings-per-share growth estimates for the sector will come 301% higher than a year ago due to oil’s higher price. And so far, that production has come true with several oil bellwethers reporting better than expected numbers.
With the sector still being cheap and seeing EPS improvements, investors may want to make a big bet on energy stocks. With that in mind, here are three energy ETFs to buy today.