Morningstar strategist David Sekera said investors are overlooking a sector that is currently trading at a discount: energy.

The American analyst considered that energy stocks are at a 5% discount and that they expect a "good performance, especially if we enter a more reflationary environment later in 2025."

In addition, Donald Trump is expected to combat inflation by reducing energy costs but without affecting the performance of large companies in the sector.

It should be remembered that, after the Republican's victory, the shares reached new highs, and then took a slight respite.

“At this point, whether you want to call it the Trump push or the Trump rally, based on our assessments, I think it has already run its course,” Sekera clarified.

Now it remains to be seen the upcoming earnings season. In that sense, Sekera does not expect additional profits in the short term.

“The US stock market, right now, is priced perfectly, so I see limited upside until earnings start catching up with valuations, and that may take at least a couple of quarters,” he added.

Two energy stocks to take advantage of the "discount"

Exxon Mobil (XOM): It is one of the largest oil companies in the US and the world. According to Morningstar, the firm is trading at a 22% discount.

Their shares have not been volatile at all considering how the price of crude oil has fluctuated in recent weeks.

Thus, XOM shares have accumulated a gain of almost 20% so far this year.

Devon Energy (DVN): According to experts, the shares are trading at a 12% discount. As for its shares, they have not experienced a good year, registering a fall of 14.3%. Will it be time for it to rebound?