As a result, energy stocks have also posted massive earnings beats on a year-over-year basis. Many energy stocks are cheaper than they were a year ago because their earnings have outpaced gains in their equity prices. And, this has become even more pronounced in recent weeks with the sell-off in energy stocks on concerns about growth slipping due to the outbreak in coronavirus cases with the Delta variant.
However, there are some compelling reasons to treat this dip as a buying opportunity. For one, CAPEX in the energy sector remains quite low despite the rebound in price. Additionally, demand for oil and natural gas has proven to be quite resilient over the past year despite the shutdowns and decrease in economic activity. Therefore, investors should look to add the following energy stocks: Oasis Petroleum (OAS), Apache Corporation (APA), and Continental Resources (CLR).