Steph Guild says energy is one of only two sectors beating the S&P 500 this year, but she would no longer buy the sector fund.
- Guild says energy prices feed into almost everything, including technology.
- Robinhood Strategies sold Exxon Mobil shares to buy EOG Resources.
- Retail sentiment on Stocktwits is ‘bearish’ or lower on all five energy names.
Steph Guild, chief investment officer for Robinhood Markets Inc. (HOOD), where she runs Robinhood Strategies, said at the HOOD Summit last week that the energy sector is one of the best hedges in the stock market at present.
“I think for the entire year when you look at the market, the best hedge has been actually investing in the energy sector, which is one of only the two sectors this year that are outperforming the S&P. And I actually don’t think that necessarily goes away,” she said to Phil Rosen in Houston, Texas.
Why Energy Has Worked As A Hedge
The Energy Select Sector SPDR Fund (XLE) has gained more than 45% this year, well ahead of the S&P 500. Information technology is the other sector to beat the index.
Oil and energy prices have soared in 2026 following the U.S.-Israel war with Iran, which led to a shortage in global supply after the critical Strait of Hormuz was blocked since late February.
At the time of writing, Brent crude oil futures were trading above $100 a barrel.
Guild highlighted that energy prices feed into almost everything, including technology. She reiterated that she likes the hedge in the energy space, adding that investors may want to “continue to pick your spots but keep your allocation to the sector the same,” implying that one should not necessarily hold the same stocks over the whole time period.
Guild’s Top Energy Picks
Guild said that while Exxon Mobil (XOM) and Chevron Corp. (CVX) are the two biggest names in the energy sector, Robinhood Strategies prefers two other companies: EOG Resources, Inc. (EOG) and Diamondback Energy Inc. (FANG).
The investment officer said that Robinhood Strategies had sold XOM stock to buy EOG stock instead, as they were always “looking at where the next opportunity is within the space.”
She added that Diamondback was another energy stock she liked that is “doing interesting things.” Guild, however, reiterated that neither was investment advice, but just her preference.
When asked whether she would simply buy an energy-sector exchange-traded fund instead of stocks, she said, “No, I kind of feel like that part is done because it is up so much this year and you want to be careful about even making that statement.”
EOG stock has gained nearly 41% this year, slightly edging out Exxon and Chevron’s nearly 40% gains and far outperforming Diamondback’s 25%.
What Does Retail Think About The Energy Stocks?
On Stocktwits, retail sentiment around CVX, FANG, EOG and XLE were ‘bearish’ at the time of writing.
Meanwhile, sentiment for XOM stock was ‘extremely bearish.’
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