-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CFRA maintains our 1-Star (Strong Sell) rating on the State Street Energy Select Sector SPDR ETF (XLE 57 *). CFRA's ETF ratings were updated as of the end of March 2026. This ETF rating is consistent with CFRA's recent decision to downgrade the energy sector to underweight from marketweight. Although constrained flows related to the Iran conflict will boost crude oil prices in 2026, CFRA's fundamental analysts believe it is a short term "sugar high". They project a sharp drop in prices in 2027, bottoming out at the $40 per barrel mark. The sector currently looks highly overvalued to CFRA's technical analysts, and the fundamental team thinks earnings revisions will likely move lower in 2027. The Williams Companies Inc. (WMB 73 **) is one of the top 5 holdings in XLE. The stock was downgraded to a Sell rating from Hold on Feb. 12, 2026, primarily due to valuations. While prospects for gas pipeline transportation and processing look strong, much of that improvement has already been factored into the share price.