Skip to Content
US Videos

Coronavirus Zapped Energy Stocks

When will crude oil recover?

Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.

The Morningstar US Energy Index has lagged the broader domestic market. Energy stocks underperformed in the third quarter, as crude oil prices have been stubbornly flat and well below the midcycle level of $55/barrel for WTI crude that would incentivize the right level of development activity from swing producers like U.S. shale and OPEC. However, we believe the market is still extrapolating bottom-of-the-cycle crude prices to infinity, making energy stocks look historically cheap. Energy is still the most undervalued industry sector, trading at a discount of about 30% to our intrinsic fair value estimates.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.