Name: US Energy Stocks Already Doubled, Still at PER 10x Level | Chesley Investment Advisory Vice President Choi Il-ho [Chesley Official Membership / 24.08.26.Mon]
Uploaded: 2026-08-29T21:00:08+00:00
Duration: 1064 s

Speakers

Choi Il-ho — Vice President, Chesley Investment Advisory

Summary

Choi Il-ho reviews the U.S. market after the August volatility recovery, highlighting sector rotation into energy, healthcare and materials while tech leadership broadens. He focuses on U.S. energy stocks, especially Marathon Petroleum and Valero, which have doubled yet trade around 9-10x earnings, and tracks the AI software rebound led by Palantir against lagging data center and semiconductor names. He also flags Nvidia and Marvell earnings as the next key test for the semiconductor rebound amid ongoing choppy conditions.

U.S. indices rebounded in August after July volatility, with U.S. trading calmer while KOSPI and Nikkei led year-to-date gains.
U.S. energy sector is up 41.2% YTD, the strongest sector after semiconductors, and remains closely tied to WTI.
Marathon Petroleum and Valero Energy have doubled this year but trade at low P/E multiples as earnings revisions remain strong.
AI software, led by Palantir, is recovering after a July double bottom, while data center and memory-themed names lag below highs.
Russell 2000 and equal-weight S&P 500 outperformance indicates broadening beyond large-cap tech.
Dollar weakness is supporting gold, silver, copper and the materials sector.
The semiconductor rebound is unstable, with Nvidia and Marvell earnings seen as critical catalysts.

Ideas

Choi Il-ho Vice President, Chesley Investment Advisory 3:36

Rally broadening into small-cap and equal weight.

The August rebound is broadening beyond large-cap tech. Russell 2000 is up about 3% in August and 20.7% YTD, trading near highs, while equal-weight S&P 500 is outperforming cap-weighted S&P 500, indicating active small/mid-cap participation and better market breadth.

Choi Il-ho Vice President, Chesley Investment Advisory 4:22

Dollar weakness supports commodities and materials.

A continued dollar decline is keeping gold, silver and copper prices firm. The materials sector rose 7.1% in August and 17% YTD, so the dollar tailwind remains a support for commodity and materials exposure.

Choi Il-ho Vice President, Chesley Investment Advisory 7:22

AI software recovering, Palantir leading it.

AI software was weak through June but bottomed around July 23 and is now recovering. Palantir's earnings surprise is the main driver with a 46.2% August gain, while Intuit, ServiceNow, Salesforce, Adobe and Microsoft also rebounded, suggesting money is rotating back into AI software after the earlier selloff.

Choi Il-ho Vice President, Chesley Investment Advisory 9:25

US energy sector has strong oil-linked momentum.

U.S. energy is the strongest sector after semiconductors this year, up 41.2% YTD through August, and it remains highly correlated with WTI. The rally is supported by oil-price strength rather than pure multiple expansion, so the sector continues to offer oil-linked momentum exposure.

Choi Il-ho Vice President, Chesley Investment Advisory 10:16

Refiner earnings growth keeps valuations low.

Marathon Petroleum and Valero Energy have already doubled this year but still trade at low trailing P/E multiples because their EPS has shown triple-digit YoY growth for recent quarters and has been repeatedly revised upward as oil prices climbed. Even with strong price gains, their valuations keep falling to around 9.2x for Marathon and 10.4x for Valero.

Choi Il-ho Vice President, Chesley Investment Advisory 12:47

Nvidia, Marvell earnings key for semiconductor rebound.

The Philadelphia semiconductor index has rebounded about 3.8% in August, but the rebound is unstable with repeated 2-3% daily swings. Nvidia and Marvell earnings are the key catalysts that will determine whether semiconductor momentum can continue.

US Energy Stocks Already Doubled, Still at PER 10x Level | Chesley Investment Advisory Vice President Choi Il-ho

Summary

Ideas

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