Crude oil prices have surged in the past year due to supply cuts and the Russo-Ukrainian war; Unsurprisingly, this has helped boost oil stocks. But some of these companies are starting to look expensive, according to David Sekera, Morningstar’s chief US market strategist, who said instead, there’s another angle of the sector that offers opportunity. . “We think most [exploration and production] companies, while they entered the undervalued year, they were up about 30% year over year. And we think they’re pretty fair, maybe even overpriced at this point,” he told Pro Talks last week. Exploration and production companies seek and extract oil in the segment. upstream of the business Crude oil prices were somewhat volatile towards the end of the month.Despite falling below $100 in early June, prices rallied back above $100.However, both Brent and WTI were high. The S&P 500 Energy Index is also up about 50% YoY (formerly National Oilwell Varco), and Halliburton Read more ‘Top Stocks’ of this food chain’ are the best names you can buy, one investor said Forget Tesla – buy these EV-related stocks instead, Morningstar strategist said. ‘Cheap Outright’ : JPMo rgan says there’s a tactical buying opportunity in these global stocks “We also think that in the median space a lot of pipelines are still knitting g is undervalued. So those would be two areas that… could be looking at for a lower valuation,” Sekera told CNBC Pro Talks. In its third-quarter outlook report, Morningstar detailed its stock options in the energy sector and said investors can now get Schlumberger “for a bargain.” “We expect industry activity to recover from COVID-19, with long-term activity in international markets (where Schlumberger is focused) even surpassing pre-pandemic levels. We think Schlumberger will continues its historic record against leading companies in terms of technological advancement and high return on capital generation,” the report said. Schlumberger last traded at $33.13, well below Morningstar’s fair value of $49. The Morningstar report also says ExxonMobil is a pick, trading at $86.10, below its fair value of $96. It noted that Exxon has said it plans to double earnings by 2025 from 2019 levels. Exxon estimates that under that plan, it will generate about $100 billion in surplus cash for the year. next year – after investment spending and dividends. “The combination of potential earnings growth and cash return is unmatched elsewhere in the industry,” the report said.