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U.S. Energy Sector Analysis

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies439
  • 7D0.5%
  • 3M1.7%
  • 1Y0.1%
  • YTD-1.4%

Last week, the Energy industry hasn't moved much but Valero Energy is up 13% in that time. Furthermore, the industry has been flat for the past year as well. Looking forward, earnings are forecast to grow by 12% annually.

Sector Valuation and Performance

Has the U.S. Energy Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 08 Jan 2026US$2.4tUS$1.9tUS$126.3b15.4x18.7x1.3x
Sat, 06 Dec 2025US$2.4tUS$1.9tUS$124.8b15.8x19.1x1.3x
Mon, 03 Nov 2025US$2.3tUS$1.9tUS$126.3b14.3x18.1x1.2x
Wed, 01 Oct 2025US$2.4tUS$1.9tUS$125.9b14x18.8x1.3x
Fri, 29 Aug 2025US$2.3tUS$1.9tUS$126.5b13.6x18.3x1.3x
Sun, 27 Jul 2025US$2.3tUS$1.9tUS$132.8b12.4x17.3x1.2x
Tue, 24 Jun 2025US$2.3tUS$1.9tUS$134.4b12.1x17.1x1.2x
Thu, 22 May 2025US$2.2tUS$1.9tUS$134.5b11.2x16.4x1.1x
Sat, 19 Apr 2025US$2.1tUS$1.9tUS$143.7b11.2x14.9x1.1x
Mon, 17 Mar 2025US$2.3tUS$1.9tUS$144.0b12.6x16.2x1.2x
Wed, 12 Feb 2025US$2.4tUS$1.9tUS$156.1b12.3x15.6x1.3x
Fri, 10 Jan 2025US$2.3tUS$1.9tUS$158.5b11.9x14.8x1.2x
Sun, 08 Dec 2024US$2.4tUS$1.9tUS$158.5b11.9x15x1.2x
Tue, 05 Nov 2024US$2.3tUS$1.9tUS$163.9b11.3x13.9x1.2x
Thu, 03 Oct 2024US$2.3tUS$2.0tUS$175.3b11.6x13x1.2x
Sat, 31 Aug 2024US$2.3tUS$2.0tUS$172.3b11.5x13.5x1.2x
Mon, 29 Jul 2024US$2.3tUS$1.9tUS$174.7b11.7x13.3x1.2x
Wed, 26 Jun 2024US$2.3tUS$1.9tUS$176.0b11.3x13.1x1.2x
Fri, 24 May 2024US$2.3tUS$1.9tUS$174.8b11.2x13.2x1.2x
Sun, 21 Apr 2024US$2.4tUS$2.0tUS$206.3b10.6x11.8x1.2x
Tue, 19 Mar 2024US$2.3tUS$2.0tUS$206.4b9.4x11.4x1.2x
Thu, 15 Feb 2024US$2.1tUS$2.0tUS$217.0b8.7x9.8x1.1x
Sat, 13 Jan 2024US$2.2tUS$2.1tUS$242.2b8.6x9.2x1.1x
Mon, 11 Dec 2023US$2.2tUS$2.1tUS$242.4b8.4x9x1.1x
Wed, 08 Nov 2023US$2.3tUS$2.1tUS$246.6b8.6x9.3x1.1x
Fri, 06 Oct 2023US$2.3tUS$2.2tUS$272.9b7.4x8.4x1x
Sun, 03 Sep 2023US$2.4tUS$2.2tUS$272.6b7.8x8.8x1.1x
Tue, 01 Aug 2023US$2.6tUS$2.3tUS$296.8b7.5x8.9x1.2x
Thu, 29 Jun 2023US$2.5tUS$2.4tUS$315.8b6.9x7.8x1x
Sat, 27 May 2023US$2.4tUS$2.4tUS$316.0b7x7.6x1x
Mon, 24 Apr 2023US$2.2tUS$2.4tUS$280.4b6.8x7.9x0.9x
Wed, 22 Mar 2023US$2.1tUS$2.4tUS$280.9b6.7x7.5x0.9x
Fri, 17 Feb 2023US$2.3tUS$2.3tUS$271.5b7.8x8.5x1x
Sun, 15 Jan 2023US$2.4tUS$2.3tUS$256.7b8x9.3x1x
Price to Earnings Ratio

9.3x


Total Market Cap: US$2.4tTotal Earnings: US$256.7bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Price to Earnings3Y Average 12.7x202420252026
Current Industry PE
  • Investors are optimistic on the American Energy industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 18.7x which is higher than its 3-year average PE of 12.7x.
  • The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.3x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have declined 21% per year over the last three years,
  • Revenues have also declined 6.6% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.S. Energy sector?

US Market1.52%
Energy0.55%
Energy Services7.21%
Oil and Gas-0.16%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 25.2x.
    • Analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings decline of 20.4% per year.
  • Investors are most pessimistic about the Oil and Gas industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.3x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 20% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
VLO Valero EnergyUS$183.8612.9%
+US$6.4b		46.9%PE37.6x
SLB SLBUS$42.3710.4%
+US$6.0b		9.2%PE17.4x
CVX ChevronUS$155.201.8%
+US$5.6b		3.3%PE24.5x
PSX Phillips 66US$137.886.9%
+US$3.6b		18.6%PE37.1x
BKR Baker HughesUS$48.847.2%
+US$3.3b		12.4%PE16.7x

Latest News

FANG
US$140.46
Diamondback Energy
7D
-6.6%
1Y
-17.9%
FTI
US$49.18
TechnipFMC
7D
10.4%
1Y
51.1%
TRGP
US$174.55
Targa Resources
7D
-5.4%
1Y
-9.1%
HAL
US$30.38
Halliburton
7D
7.5%
1Y
12.4%
BKR
US$48.84
Baker Hughes
7D
7.2%
1Y
12.4%
XOM
US$118.49
Exxon Mobil
7D
-1.5%
1Y
10.8%

XOM: Cost Savings And Capital Returns Will Support Future Cash Flow Stability

We are trimming our Exxon Mobil fair value estimate slightly to $131.32, reflecting modest tweaks to margin and growth assumptions. Analysts highlight resilient free cash flow, ongoing structural cost savings, and a series of higher price targets in the US$128 to US$156 range that underscore continued confidence in the name.
CVX
US$155.20
Chevron
7D
1.8%
1Y
3.3%

CVX: Future Dividend Capacity Will Reflect Free Cash Flow And Upstream Execution

Analysts have slightly trimmed their Chevron fair value estimate to about $172.08 per share. This reflects modestly softer revenue growth and profit margin assumptions, even as recent price target increases highlight confidence in free cash flow support for dividends and the company’s longer term growth plans.
MPC
US$172.51
Marathon Petroleum
7D
6.1%
1Y
21.2%
OKE
US$70.72
ONEOK
7D
-3.8%
1Y
-31.2%

OKE: Q3 Synergy Delivery Will Drive Earnings Confidence And Multiple Upside

Analysts have modestly reduced their price target on ONEOK, trimming it by $5 to $78 per share. They are awaiting Q3 results, which they see as a critical test of the company's ability to deliver on synergy goals and sustain earnings growth.
SLB
US$42.37
SLB
7D
10.4%
1Y
9.2%
EXE
US$106.66
Expand Energy
7D
-3.4%
1Y
3.6%

EXE: Higher Future Output And Buybacks Will Support Bullish Outlook

Analysts have nudged their price target on Expand Energy slightly higher to approximately $133.39 per share from about $132.86, reflecting modestly improved valuation multiples despite slightly weaker forecasts for revenue growth and profit margins. What's in the News Completed repurchase of 851,661 shares, totaling approximately 0.36% of shares outstanding for $99.99 million under the buyback program announced on October 29, 2024 (Key Developments) Reported no share repurchases from July 1, 2025 to September 30, 2025 under the existing buyback tranche, signaling a pause in capital return via buybacks during the quarter (Key Developments) Updated full year 2025 production guidance to 7.15 Bcfe per day, about 50 MMcfe per day above the prior midpoint, indicating a modest increase in expected output (Key Developments) Valuation Changes The fair value estimate has risen slightly to about $133.39 per share from roughly $132.86, implying a modestly higher intrinsic valuation.
DVN
US$34.47
Devon Energy
7D
-5.9%
1Y
-1.9%

DVN: Future Cash Returns And Buybacks Will Drive Share Price Upside

Analysts have modestly lowered their price target on Devon Energy, trimming it by a few dollars per share into the low to mid $40s. Updated models following Q3 results reflect slightly weaker cash flow expectations and more conservative assumptions for revenue growth and margins, even as operational execution remains solid.
EOG
US$102.55
EOG Resources
7D
-2.3%
1Y
-20.2%

EOG: Secular Gas Demand Will Drive Cash Flow Upside Ahead

Analysts have modestly trimmed their fair value estimate for EOG Resources by approximately $0.52 to about $136.20. This reflects slightly lower assumptions for revenue growth, profit margins, and future valuation multiples following updated 2025 guidance and early 2026 outlook commentary across the energy coverage.
PSX
US$137.88
Phillips 66
7D
6.9%
1Y
18.6%

PSX: Future Cash Flows Will Reflect Robust Capital Returns Amid Refining Margin Support

Analysts have nudged their blended price target on Phillips 66 slightly lower to approximately $149 from about $149.35, reflecting a modestly higher discount rate and softer long term revenue expectations. This is partially offset by slightly improved profit margin and future earnings multiple assumptions informed by recent target increases and ratings changes across the Street.
VLO
US$183.86
Valero Energy
7D
12.9%
1Y
46.9%

VLO: Capital Returns And Complex Refining Margins Will Shape Future Performance

Analysts have made a slight upward adjustment to their price target on Valero Energy to about $186 per share, citing the company’s complex refining capabilities, improving operating margins, and stronger than expected recent earnings performance as key drivers of the improved outlook. Analyst Commentary Recent Street research on Valero Energy reflects a generally constructive view on the stock, with multiple firms boosting price targets and initiating coverage at favorable ratings.
KMI
US$27.00
Kinder Morgan
7D
-1.8%
1Y
-4.6%