Stocks in the S&P 500’s energy sector still have plenty of upside despite their 74% surge in the past 12 months, according to Jeff Buchbinder, chief equity strategist at LPL Financial. The strong rally in energy shares, including those of oil giants Exxon Mobil Corp
and Chevron Corp.,
compares with a 6.6% drop for the broader S&P 500 index
from a year ago, with energy and utilities helping offset blistering losses in other parts of the index.
While focus this summer briefly shifted to a rebound in shares of information technology, consumer discretionary and other “growth”-oriented sectors, energy now appears to be back on a path (see chart) higher.
LPL Financial, FactSet
Buchbinder said this dynamic should continue, despite energy stocks being a “controversial investment for some,” in emailed comments Thursday. He also hasn’t been alone in his bullish call, with JP Morgan Chase & Co.’s equity research department and others on Wall Street calling out ene …