Energy stocks may be lagging the market, but don't count them out just yet, according to "Halftime Report" traders.
The Energy Select Sector SPDR Fund gained a whopping 57.6% in 2022, compared with the S & P 500 's 19.4% drop.
XLE YTD mountain Energy Select Sector SPDR Fund YTD performance However, he still advocates an overweight exposure to the energy sector.
Sarat Sethi, portfolio manager at Douglas C. Lane & Associates, is also slightly overweight in energy and sees a potential buying opportunity.
"Generally speaking, European energy trades much cheaper to US energy for a variety of historical reasons that I think are no longer relevant," she said.