XLEEnergy Select Sector SPDR FundNeutralEnergy Select Sector SPDR Fund

9/20/2026 on

Our piece "Information Technology & Energy: The Two Tails of Extrapolation Bias" highlights the 10 largest Tech stocks trading at 13x sales, 38x earnings and a 2% FCF yield, while the 10 largest Energy stocks trade at 2x sales, 24x earnings and a 4% FCF yield. Those Energy multiples are based on depressed earnings. The trailing numbers cover a year when oil averaged $65. Oil is roughly $100 today, yet analysts still expect Energy earnings to stall in 2027. Low multiples on low earnings is what we call trough on trough. Many investors are paying 50x free cash flow for Tech's past, while passing up the opportunity to get Energy's future at a discount. https://t.co/TUfnBZx5uV