As we noted earlier today, the Energy sector has certainly been the stand-out worst performer in Europe so far this month (and quarter, and year!):
Though the group may have reached oversold territory, we can hear the voice of a long-time mentor whispering, "there is no such thing as TOO cheap."
Energy constituents spend the least on R&D and Advertising as a percent of sales, resulting in one of the lowest stocks of Intellectual Property of any sector:
European Energy companies have the lowest margins and nearly non-existent free cash flow:
Earnings estimates seem to reflect these fundamental shortcomings fairly well:
Finally, among the 24 constituents of the MSCI Europe Energy sector, we can find just ONE chart in our point-and-figure methodology that looks even remotely hopeful:
The rest look something like this:
It could be some time yet before this particular group offers many promising investment opportunities.