Stocks This Week: Buy Schlumberger And Hess

The top six stocks in the technical/cycles screens are all in the energy sector. Readers may recall the bullish recommendations in this sector one year ago. The sector is still projecting strength in 2023. The XLE Energy ETF is utilized to represent the energy stocks. The histogram below reveals that this group is entering its most bullish season.

XLE Monthly Histogram

Red: Percentage of months in which price rose

Blue: Percentage price change

Green: Expected return (product of the first two)

From January 4^th to June 9^th, the index has risen 71% of the time. From January 30^th to March 5^th, XLE has rallied 75% of the time. Both of these readings are number one for the sectors. There has been some weakness in the second half of January, so this will likely be a time to add energy stocks to portfolios.

Schlumberger is number one in the sector. The shares have risen 74% into March and June, slightly better than the sector. The monthly cycle rises into the spring. The monthly graph shows the reversal of a seven- year downtrend in relative strength. This projects four years of relative outperformance. The $70-$75 range is the next objective.

Schlumberger Monthly Graph

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids and natural gas. The histogram below shows that this stock is also in its bullish time span. From January to May, the share price has been up almost 70% of the time. The $175 area is a reasonable price target through Q1.

Hess Monthly Histogram

Hess Monthly Graph