This 1 Energy Stock Could Be Your Best Bet To Play The Comeback In Oil

This energy stock might be the smartest play in the energy sector now.

Energy stocks have struggled in 2019 and have been the worst-performing sector in the S&P 500 this year.

But now they are on the move, and there’s one stock in particular is a great way to play the trend. 

Despite a drop in oil prices, energy stocks were holding a 1% gain early this week. And Oppenheimer technical analyst Ari Wald says the sector has bounced from a “very deep oversold condition,” though it’s too early to say if “this is a sea change for the sector.”

“Energy’s relative trend… has been in this steady progression of lower highs and lower lows over a number of years, but I think there is a little bit of juice left here just simply based on our view of the market,” Wald said to CNBC.

But this latest uptrend in energy’s most beaten-down names is “very bullish” for investors and should lead to higher prices for the whole sector, according to Wald.

“I just want to be selective within energy,” Wald cautioned. “The midstreams really screen positively for us for exposure to this sector.”

Wald’s favorite stock in the sector is midstream energy company OneOk (NYSE: OKE), which is known in particular for transporting natural gas liquids throughout the U.S. 

So far this year, shares are up 37%, thanks in part to investors looking for yield being attracted by OneOk’s 4.84% dividend yield.

Right now, OKE is “breaking through five-year resistance dating back to 2014,” Wald said, noting that it’s “tough to find another energy stock that has that type of profile. Here’s a leading energy company that is participating as the laggards bounce as well. That’s how we want to play. That’s a top idea for exposure, OneOk.”

Source: TradingView.

By the way, if you liked this article, you'll LOVE this Meaty free training I just published on the top 3 questions and challenges every investor faces AND how to overcome them. It's titled "10k into $2.4 Million in 18 months" and you can grab it for free here

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.

FREE TRAINING - TRADERSPRO PRESENTS: Retire In 18 Months With $2.4 Million?

Join Us Now