Energy stocks such as ExxonMobil and Chevron are surging due to rising oil prices amid geopolitical tensions.
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00:00I think we got it. I hate to go back to the Middle East situation here, but nothing moves
00:05more off the Middle East uncertainty than oil. And you've had a big move here in crude oil
00:13just over the last two days. So let's talk some oil stocks here.
00:19I mean, all of them just moved together. So you don't even have to talk to them individually,
00:22just talk XLE because it covers everything. I mean, we're moving up here again. Chevron,
00:27Exxon are like 40% of the XLE or something crazy like that. Conoco,
00:32Oxy, just pick your stock and they're going. Now, if escalations de-escalate, does oil get hit back?
00:40Maybe. One thing to consider with oil stocks though is the valuations are dirt cheap here too.
00:45Not saying it's another China trade, but when you have story coupled with ridiculously cheap
00:51valuations, these stories can move a lot longer than you think. And most of these oil stocks,
00:57let's just go to our trusty Benzinga Pro here, AB. I mean, when you have stock trade 10, 11,
01:0312 times earnings and all of a sudden they have a story, you see violent short squeezes, you see
01:08people jumping in, you see chasing, you see a lot of things like that. Right now we got escalation
01:14still happening. We haven't seen any de-escalation. If you think Israel is not going to retaliate,
01:20of course they're going to retaliate. This is what they do. They're going to retaliate.
01:23I mean, it's hard to just end these things. It's like, okay, they were one and done.
01:30They threw some missiles at us. Okay. It's okay. We're just going to call a peace treaty now. It's
01:34probably not going to happen. So if you're short in oil saying, well, this is just, we know it's
01:39going to go back down. It's like short in China right now. You got a hot story and cheap valuations
01:44and that is dangerous for sure. Yeah. That CVX has a nice dividend too.
01:50ExxonMobil made that big acquisition of Pioneer and maybe it took a while, but maybe get some
01:59synergies. This is right back at almost at all time highs here and relative to the price of oil,
02:07it's really a strong outperformance. Oxy, boy, I haven't heard anything about Warren,
02:14but Oxy's getting a nice boost up here, looking to move over that $54 area.
02:22So there, there's a bunch of oil stock.