Oil stocks are on fire this year. The average one in the S&P Oil & Gas Exploration & Production EFT (an ETF that holds 50 oil and gas producers) is up more than 30% year-to-date. Oil stocks are up even more over the past year as they've skyrocketed off their pandemic-induced bottom in March 2020.
However, if we go out a bit further, it's a different story. Oil stocks are down nearly 20% since the start of 2020 and almost 50% over the past year. That makes it seem like the market might have undervalued oil stocks relative to the current oil price. Here's a look at whether the oil industry is ripe with opportunity for value investors or a value trap.
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Source Fool.com