Top 3 Seeking Alpha Quant picks in Energy sector this earnings season
Torsten Asmus

The S&P 500 Energy Index is among the worst performing sectors in 2023 as faltering global growth weakened expectations of oil demand.
The Energy Index has fallen 6.1% so far this year but has gained 14.5% in the last 12 months, while its accompanying Energy Select Sector SPDR ETF (NYSEARCA:XLE) fell 5.9% this year.
Eurozone and China weighed on oil prices, pushing crude oil down about 6% for the year, leading to a decline in the price of energy companies.
Stocks making up the S&P 500 Energy Index have secured an average health score of 3.38, the fourth highest behind the Communication Services, Consumer Cyclical, and Industrials indexes, according to the latest data from Seeking Alpha's Quant Rating System.
The system awards grades based on quantitative measures like valuation, earnings growth, and recent stock performance. The highest possible score for any individual company is a 5.
When looking at individual components, four out of the 23 companies that make up the Energy Index are considered "Buy" and one is a "Strong Buy". The rest are rated "Neutral" as per Quant's recommendation.
Exxon Mobil (NYSE:XOM) notched the top spot with a score of 4.66 out of 5. The system suggested that profitability for the oil and gas behemoth was the best in class, which easily offset its performance, growth, and valuation grades. The company is set to report its second-quarter earnings on July 28.
Baker Hughes (NASDAQ:BKR) bagged the runner-up position with a score of 4.29 out of 5, helped by growth and stock momentum grades, which are both rated A- according to Quant's suggestions. On July 19, the oilfield services provider reported better than expected Q2 adjusted earnings and in-line revenues of $6.3 billion, up 10% sequentially and 25% from last year.
EQT Corp. (NYSE:EQT) comes in third with 4.21 out of 5. The Quant System displayed that the natural gas company has favorable ratings for its growth, performance, valuation, and profitability. Among all Energy Index constituents, EQT is the only stock showing green for all its indicators during a portfolio analysis on the Seeking Alpha portal. The company has scheduled its Q2 earnings for July 25.

Year-to-date, XOM has fallen 3%, BKR is up 24%, and EQT is up 26.5%, respectively.
More on the energy sector:


Crude oil bounces as Russian seaborne crude exports sink to six-month low.

Prices For Undercapitalized Crude Oil Limps Along.

USO: Crude Oil Spike Usually Appears At End Of Economic Cycle (Rating Upgrade).