Losses among energy stocks have led to a “value point,” according to Keith Parker, head of U.S. equity strategy at UBS Group AG. In a report Wednesday, he cited the gap between dividend yields on the S&P 500 Energy Index and two other indicators, the S&P 500 and the index’s materials group. They exceeded a percentage point during the past month, which Parker cited as his threshold for value. He raised his rating on energy to overweight and recommended a pair trade: investing in the group and betting against raw-material producers.
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