S&P 500 Gets Crushed By Energy Stocks On Pace For Historic Outperformance

Energy stocks are poised for their best quarterly outperformance against the S&P 500 on record, with the Energy Select Sector SPDR Fund (XLE) up over 40% year-to-date, while the S&P 500 has declined approximately 6%. In March alone, the XLE has gained 11.4%, with 14 of its 22 constituents rising more than 10%, led by APA Corporation at +44.23%. Despite this strong performance, Goldman Sachs analysts indicate that energy equities are still pricing in a conservative WTI oil price of around $71 per barrel, suggesting potential undervaluation in the sector amid ongoing geopolitical tensions affecting oil supply.