By Doug Busch

As the summer doldrums set in, highflying sectors like technology may finally be due for a breather. The healthcare sector has already caught a big, and energy may be next. For that shift to gain traction the major players will need to step up.

Among the U.S. mega caps, Chevron continues to outshine Exxon Mobil in terms of relative strength, but international names like BP are quietly putting together strong performances.

BP is up 15% year to date, far outpacing Chevron's 7% rise and ExxonMobil's 1% decline. On top of price performance, BP offers a more attractive dividend yield at 5.7%, compared with Chevron's 4.4% and Exxon's 3.7%.

From a technical perspective, BP, which was recently trading at $33.78, has been repeatedly repelled near the $35 level over the past year, forming a resistance zone that's acted like a ceiling. This time, though, the price action is showing more resilience, carving out a bull flag just below that level. A breakout above $34.50 could trigger a quick move to $37.50, and potentially $40 by year-end.

Among the more established exploration and production names, Apache is starting to stand out with relative strength. This stock has posted solid gains, up 8% over the past month and 18% over the past three months. It also offers an attractive dividend yield of 4.9%. That performance sharply contrasts with peers like Diamondback Energy and EOG Resources, both of which have traded flat over the same time frames.

Technically, Apache, which has fallen 0.7% to $20.27 on Tuesday, has cleared its 200-day simple moving average, a level that had consistently acted as resistance since April of last year. It now trades comfortably above that long-term trend line, a position that Diamondback, EOG, and Devon Energy have yet to reclaim.

The stock is also holding above the round $20 level and the chart is being further bolstered by an inverse head and shoulders pattern, with a pivot around $21. A breakout above that level could trigger a strong move toward the $27 level by year-end.

Flotek Industries, an often-overlooked energy equipment name, is having a strong 2025 up 20%, while its benchmark, the VanEck Oil Services ETF, is down 12% over the same period. However, a recent pullback, down 32% over the past two months, may offer a compelling opportunity.

On the chart, the stock is now approaching the $10 level. That round number acted as resistance twice -- first in December, then again in March -- before the stock surged a combined 95% during the two weeks ending May 9 and May 16, breaking out from a double bottom base in the process.

The current retreat could be setting the stage for a new double bottom pattern, with the $10 level serving as potential support. Look for an entry at $10.50 which would provide some additional comfort at the 200 day simple moving average which was supportive last September and at the start of the second quarter.

Flotek Industries traded at $11.49 Friday.

As solar stocks regain momentum and nuclear cools off, shares of Nextracker, which builds software that helps manage yields at solar plants, is powering to new all-time highs. The stock has gained 13% this week after an 8% advance the week prior. Shares are now up 83% for the year despite falling 1.5% to $66.70 on Tuesday.

Nextracker is forcefully breaking above the key $60 level, which was resistance multiple times in the first and second quarters of 2024, as well as in May and June of this year. On Aug. 18, the stock cleared a double bottom pivot at $65.76, marking another bullish confirmation.

With this breakout unfolding, continued follow-through looks likely, and a move toward the round $90 level by year-end remains a reasonable upside target.

Maybe there's energy in energy after all.

Write to Doug Busch at douglas.busch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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August 19, 2025 14:56 ET (18:56 GMT)

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