US energy stocks favored by Fuguo Bank, integrated oil and midstream energy stocks are "favorites"

According to the report from the Investment Research Institute of Fuguo Bank, the energy sector in the US stock market is the most favored sector, especially integrated oil and midstream energy stocks. The global securities research team of the Investment Research Institute of Fuguo Bank has released a list, listing the sub-sectors of the S&P 500 index that analysts are most optimistic about. Analysts stated that as macroeconomic fluctuations continue, they expect the long-term fundamentals of the energy sector to remain solid. The report states: "Energy companies continue to prioritize capital discipline and provide competitive shareholder returns through dividends and stock buybacks. We believe that recent industry consolidation has improved capital efficiency, valuations are reasonable, and company balance sheets have shown significant improvement in the past few years." Analysts favor integrated oil companies because of their large scale, financial flexibility, and diversified exposure in the energy value chain. Quality midstream companies are also favored. On the other hand, analysts are not optimistic about refiners, "as we expect refining margins to remain highly volatile due to global capacity increases and fluctuations in global product demand."