Is the Energy Trade Over? When a stock or a sector has a strong run, investors inevitably ask: Am I too late? Energy stocks – especially old-school oil and natural gas stocks – have definitely enjoyed a strong run. The SP Energy sector is up 40% so far this year, while the SP 500 itself is down 11%. The biggest three companies have been among the best performers, with Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), and ConocoPhillips (NYSE: COP ) averaging 62% gains in 2022. Energy has been the place to make money in 2022, and we’ve done very well there. But oil prices are now off their peak. Gas prices average less than $4 a gallon for the first time since March (which is good news for inflation). And you can see in the chart above that oil stocks are also off their highs. So, is the energy trade over? Have these stocks had their day in the sun? Not in my mind. If you’re looking to invest in companies with strong earnings and sales, you should keep energy stocks on your radar… Strong Fundamentals and Strong Momentum The truth is that crude oil prices will probably moderate even more in the upcoming months due to seasonality.