All right, time now for a power check and today we are honing in on the energy sector and the recent upper performance that we have seen from some key names. Don't believe us. Well, in 2026 alone, we know the year is still early, but the energy sector is up 19%.This year, that makes it the best performing sector in the S&P 500 by far, outpacing the broader index and pretty much every other sector group. So, let's take a look at some of the names that are in the group that maybe should still be on your radar ...

Core Viewpoint - Exxon Mobil is committed to rapidly developing natural gas projects in Guyana, responding to the government's push for increased gas output and supply [1] Group 1: Company Commitment and Plans - Exxon Mobil's upstream chief, Dan Ammann, emphasized the company's commitment to fast-tracking natural gas development in Guyana [1] - The Guyanese government has urged Exxon to create projects utilizing natural gas for petrochemical plants and potential data centers [1] - Last year, Exxon introduced the "Wales Gas Vision," an early-stage plan aimed at supplying gas for various onshore petrochemical and power projects, although progress has been limited since then [1] Group 2: Project Complexity and Collaboration - Ammann noted that natural gas projects are more complex than oil projects, necessitating collaboration with multiple stakeholders, including public utilities, communities, and regulators [1] - Exxon has constructed a pipeline ready to deliver gas to Guyana, awaiting the completion of power plants scheduled for this year [1] - The company is prepared to advance engineering, execution, and investment in alignment with the government's progress on permitting approvals and market frameworks [1]

Core Viewpoint - Significant investors are adopting a bearish stance on Exxon Mobil, with a majority of trades reflecting this sentiment [1] Group 1: Options Trading Activity - A total of 58 trades were detected for Exxon Mobil, with 41% of investors taking bullish positions and 53% bearish [1] - Among the trades, there were 19 put options totaling $1,388,724 and 39 call options totaling $2,710,117 [1] Group 2: Predicted Price Range - The anticipated price range for Exxon Mobil over the last three months is between $100.0 and $200.0 [2] Group 3: Volume & Open Interest Trends - An analysis of volume and open interest is crucial for understanding liquidity and investor interest in Exxon Mobil's options, particularly within the $100.0 to $200.0 strike price range over the past 30 days [3] Group 4: Current Market Status - The current trading volume for Exxon Mobil stands at 8,121,775, with the stock price down by 1.55% at $146.15 [6] - The consensus target price from five market experts for Exxon Mobil is $146.0 [5] - An earnings announcement is expected in 44 days [6]

Core Viewpoint - Exxon Mobil Corporation will participate in the Morgan Stanley Energy & Power Conference, indicating its ongoing engagement with industry stakeholders and commitment to transparency in its operations [1] Company Announcement - Jack Williams, Senior Vice President of Exxon Mobil, will conduct a fireside chat at the conference scheduled for March 3, 2026, at 11:00 a.m. ET [1] - A live webcast of the event will be accessible, and an archived audio portion will be available on the ExxonMobil website approximately 24 hours after the event [1] Industry Context - The participation in the Morgan Stanley Energy & Power Conference highlights ExxonMobil's strategic positioning within the energy sector and its efforts to communicate with investors and analysts [1]

Core Insights - The Pacer US Cash Cows 100 ETF (COWZ) has increased nearly 7% year-to-date, contrasting with the flat performance of the S&P 500, indicating a shift in investor sentiment towards profitable companies amid concerns over high technology valuations and concentration risk [2][9] Investment Strategy - COWZ targets profitable, cash-generative businesses with reasonable valuations by screening the Russell 1000 for the 100 stocks with the highest free cash flow yield, holding them in equal weight, which reflects a quality value strategy [3] - The fund's focus on strong free cash flow allows companies to fund dividends, buy back shares, pay down debt, or reinvest for growth without relying on external financing, which is increasingly important in the current interest rate environment [4] Market Context - With the Federal Funds rate at 3.75% and the 10-year Treasury yielding 4.09%, companies generating cash internally have a competitive edge, avoiding costly external financing while providing returns that compete with fixed income alternatives [5] - The portfolio is tilted towards sectors generating cash today, with healthcare representing 22.3% and energy 18%, both known for mature businesses with established revenue streams [6] Performance Metrics - COWZ has outperformed the market by nearly 20 percentage points over five years, driven by a fundamental market shift as investors moved away from unprofitable growth companies towards those with proven profitability and strong balance sheets [7] - The fund holds established companies like Exxon Mobil, Chevron, Gilead Sciences, and Merck, which generate cash rather than burn it, demonstrating institutional validation with $18.3 billion in assets under management and a low portfolio turnover of 1.51% [8][9]

Core Viewpoint - Pacer US Cash Cows 100 ETF (COWZ) has outperformed the S&P 500 significantly, reflecting a shift towards profitable, cash-generative businesses amid concerns over high technology valuations and concentration risk [1] Performance Summary - COWZ surged 7% year-to-date, outperforming the S&P 500 by nearly 20 percentage points over five years [1] - The ETF has $18.3 billion in assets under management and a low portfolio turnover of 1.51% [1] Investment Strategy - COWZ screens the Russell 1000 for the 100 stocks with the highest free cash flow yield, holding them in equal weight, which emphasizes a quality value strategy [1] - The focus on strong free cash flow allows companies to fund dividends, buy back shares, pay down debt, or reinvest for growth without relying on external financing [1] Sector Allocation - The ETF's holdings are concentrated in healthcare (22.3%) and energy (18%), sectors known for mature businesses with established revenue streams [1] - This cash flow focus leads to a portfolio that is less speculative and more aligned with current market conditions [1] Market Context - The shift in investor preference from unprofitable growth companies to those with proven profitability is attributed to the Federal Reserve's aggressive rate hikes, making capital more expensive [1] - COWZ's strategy positions it well in a high-interest-rate environment, as companies generating cash internally gain a competitive advantage [1] Cost and Yield - COWZ charges a 0.49% expense ratio, which is reasonable for an actively managed strategy, though it is higher than broad market ETFs [1] - The fund offers a 1.8% dividend yield, which requires significant equity appreciation to justify the yield gap compared to 10-year Treasuries yielding 4.09% [1] Risk Considerations - The concentration in energy and healthcare sectors may lead to volatility, particularly with fluctuations in oil prices [1] - Investors should consider the total return profile of COWZ, as its cash flow methodology and equal-weight approach create specific risk-return characteristics [1]

Australian court fines Exxon's local petrol brand $11.3 million for misleading claims | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of American multinational oil and gas corporation ExxonMobil is seen during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren [Purchase Licensing Rights, opens new tab]- Companies[Exxon Mobil Corp]FollowFeb 17 (Reuters) - Federal Cour ...

Group 1: Mobil Oil Australia - Mobil Oil Australia, a subsidiary of Exxon Mobil Corporation, has been ordered to pay A$16 million in penalties due to misleading representations regarding fuel sold at nine petrol stations in Queensland [2][10] - The Australian Competition and Consumer Commission confirmed that the company admitted liability and cooperated with the legal proceedings, which led to joint submissions to the court [3][10] Group 2: Japanese Bond Market - The yield on the 20-year Japanese Government Bond eased to 3.03%, marking a decline of 5 basis points, indicating a shift in investor sentiment [4][10] - This easing suggests a temporary cooling of the upward pressure in the Japanese bond market as the Bank of Japan navigates its monetary policy amidst changing global interest rate expectations [5] Group 3: Commodity Markets - Agricultural commodities, particularly soybean and wheat, are experiencing a downward trend due to abundant global supplies that have outpaced demand, leading to increased inventories [6][10] - The surplus production from major exporting regions is causing difficulties in sustaining significant price rallies, with expectations of continued volatility and downward pressure on the grain complex [7]

Core Viewpoint - The Energy Select Sector SPDR ETF (XLE) has increased by 21.6% year-to-date, driven by energy security concerns and the ability of major oil companies to manage volatile crude prices [1] Group 1: ETF Performance - XLE's portfolio, valued at $33 billion, is heavily influenced by Exxon (XOM) and Chevron (CVX), which together account for 42.5% of the fund [1] - The recent performance reflects investor confidence in the ability of these oil majors to deliver returns despite unpredictable commodity markets [1] Group 2: Oil Price Dynamics - WTI crude prices have risen by 9.1% over the past month, reaching $64.53 per barrel, which supports profitability for integrated majors [1] - Factors preventing a drop in prices below $50 include China's strategic reserve buying, geopolitical supply risks, and stronger-than-expected summer demand [1] Group 3: Earnings and Cash Flow - Both Exxon and Chevron reported earnings declines due to lower oil prices, but Exxon still achieved a net income of $6.5 billion [1] - Analysts believe that these companies can sustain dividends and capital programs even if oil prices fall to $50 per barrel, thanks to low-cost assets in the Permian Basin and offshore Guyana [1] Group 4: Concentration Risk - The concentration of XLE in Exxon and Chevron means their quarterly results significantly impact the fund's overall performance [1] - The fund's low portfolio turnover of 10% indicates that this concentration is a persistent feature rather than a temporary positioning [1] Group 5: Future Outlook - The critical factor for the next 12 months is whether WTI crude can stabilize above $60 or if it will decline further [1] - The ability of Exxon and Chevron to maintain cash returns to shareholders amid compressed margins will be a key signal for investors [1]

Core Viewpoint - Energy companies are generating strong cash flows, yet their valuations reflect recession-level pessimism, with the S&P 500 Energy sector trading at approximately 12.5x forward earnings compared to 21x for the broader S&P 500 [1] Group 1: Valuation and Performance - The S&P 500 Energy sector trades at about 12.5x forward earnings, while Exxon and Chevron trade at 20x and 24x respectively [1] - Energy's free cash flow yield is estimated between 7% and 9%, more than double the broader market average [3] - Balance sheet leverage among major oil producers has significantly declined from prior-cycle peaks, indicating stronger financial health [4] Group 2: Market Position and Demand - The energy sector accounts for only 4% of the S&P 500, down from over 13% in 2008, indicating a smaller market presence [2] - Institutional ownership of energy stocks remains below historical averages due to ESG-driven divestment and tech sector outperformance [5] - Global energy demand is expected to rise, with U.S. Energy Information Administration forecasting oil consumption to reach a record 104 million barrels per day by 2026 [5] Group 3: Market Sentiment - Energy stocks are not behaving like a declining sector; instead, they are acting as if the market has not fully repriced them yet [6]