The energy sector is lagging the S & P 500 this year, but Wolfe Research spotted a couple of stocks that could be poised to gain. Oil prices have been soft this year, with West Texas Intermediate crude futures off about 9% per barrel, and Brent crude futures down 8%. Supply of the commodity has remained plentiful, and eight members of the OPEC+ cartel agreed earlier this month to lift production by 548,000 barrels a day. Similarly, the performance of energy stocks has been lackluster, with the S & P 500 sector only up by about 1% in 2025 versus 8% for the broad market index. Nevertheless, there are some gems in the space, according to Rob Ginsberg, technical analyst at Wolfe. “The landscape of the sector remains in the favor of stock pickers with outperformers being few and far between,” he wrote in a report Monday, highlighting a “compelling” name that’s on the verge of breaking out. Peabody Energy St. Louis-based coal miner Peabody Energy turned up on Ginsberg’s radar, showing “one of the most convincing charts within energy.” Ginsberg said that the stock’s 200-day moving average at $18 is the next level of resistance as momentum continues to build. BTU 3M mountain Peabody Energy in the past three months “We expect it to be tested in coming weeks, with a breakout through that level likely to follow,” the chart watcher said. Peabody closed Tuesday at $17.34, and the stock pays a dividend yield of 1.7% — fatter than the S & P 500 yield of 1.18%. Though shares have had a rough year thus far, down 17% in 2025, Peabody has recently seen a resurgence. The stock has soared 42% in the past three months, and 28% in July alone. Peabody’s hot streak coincides with President Donald Trump’s moves to take a lighter approach toward environmental regulations and his administration’s support for the coal industry to help power the growth of artificial intelligence . Earlier this month, the president granted two years of regulatory relief to coal plants, taconite iron ore processing facilities and some chemical manufacturers. Peabody shares are well liked on Wall Street, with most analysts covering the St. Louis-based coal producer rating it a buy or strong buy, according to LSEG. But Wall Street’s consensus price target calls for just 2% upside from where the stock has recently traded. —CNBC’s Michael Bloom contributed reporting