After a challenging 2024, the energy sector could be gearing up for a recovery in 2025. The Energy Select Sector SPDR Fund, which tracks energy stocks within the S&P 500, delivered a mere 2% return last year, falling well short of the broader S&P 500’s impressive 23% gain. This underperformance was primarily due to stagnant oil prices, which started the year strong but ultimately returned to near their starting levels, dampening investor sentiment.
As the industry seeks to rebound, investors could consider investing in fundamentally sound oilfield services stocks like TechnipFMC plc (FTI), Subsea 7 S.A. (SUBCY), and ChampionX Corporation (CHX), poised for potential growth.
