Industry overview

October has been a month of contradictions, writes Louis Navellier, Editor of Market 360.

First, the September inflation data was horrific, igniting concerns that the Federal Reserve will continue raising interest rates. But Treasury yields declined sharply, with the 10-year Treasury yield falling from 5.3% on October 5 to just below 5% today. The October Federal Open Market Committee (FOMC) meeting takes place today and tomorrow, with the Fed’s next interest rate decision set for Wednesday afternoon. The consensus is that the Fed will hold rates steady, and the FOMC statement should give us a better idea of where interest rates are headed.

Second, AI- and data center-related stocks have started to report phenomenal sales and earnings growth. The Information Technology sector is expected to post 65.6% earnings growth, the second highest of any sector this quarter. But AI and data center stocks continue to be punished by concerns about how the massive AI buildout will be financed. In the author’s view, those fears have been overblown — the baby has been thrown out with the bathwater — and fundamentally superior stocks will bounce back as those results continue to roll in.

But technology is not the only sector where the fundamentals are impressive. Energy has been demonstrating tremendous relative strength. More crude oil is finally being shipped from the Persian Gulf, including through the Strait of Hormuz. The Wall Street Journal reported that exports have topped 24 million barrels per day, above prewar levels. But crude oil prices remain high, with Brent crude oil at about $115 per barrel and West Texas Intermediate crude oil at about $101 per barrel, due primarily to attacks on Saudi Arabia.

The elevated energy prices have been particularly painful for Americans at the pump. According to the Energy Information Administration (EIA), the average price of gasoline in the U.S. is $4.28 per gallon, more than 40% higher than in October 2025. Diesel prices have surged more than 70% year over year to $6.28 per gallon.

But while those prices are squeezing consumers, they have also helped lift the outlook for energy companies. According to FactSet, the energy sector is expected to post average earnings growth of 127.6% in the third quarter, up from estimates of 114.8% just a few weeks ago. The author says he has added several energy stocks to his premium Buy Lists this year, and those positions have exhibited tremendous relative strength recently.

Investors are searching for the same thing. His proprietary Stock Grader system evaluates more than 6,000 stocks and assigns each a letter grade from A (Very Strong) to F (Very Weak). During the week of October 19, subscribers submitted a total of 9,140 prompts to Stock Grader AI. Specifically, there were 362 searches for A-rated stocks, 333 searches for A-rated small caps, and 295 searches for A-rated AI infrastructure and AI-related companies. There were also 118 searches that explicitly mentioned “energy,” and many wanted A-rated companies in the Energy Minerals sector. Searching “A-rated energy transport stocks” returned 43 A-rated energy transport stocks.

That is where his latest research comes in. America is undergoing an energy transformation that the author believes could be worth $31.5 trillion over the next 15 years. As American oil and natural gas production is set to expand, more energy must move through pipelines, processing facilities, and export terminals. He says he has spent the past few months identifying the companies he believes are best positioned for that shift, and he is revealing the details in his latest presentation, America’s $31.5 Trillion IPO.

Industry overview based on InvestorPlace.

What it means for investors

For investors, energy is the other side of the AI story. While AI and data center stocks are being punished over financing fears despite 65.6% expected earnings growth in the Information Technology sector, the energy sector is expected to post 127.6% average earnings growth in the third quarter, up from 114.8% just a few weeks ago. That combination of high prices — Brent at about $115 and West Texas Intermediate at about $101 — and rising earnings estimates is why energy stocks are showing tremendous relative strength, and why the author has added several to his premium Buy Lists.

But that does not mean every energy stock is worth buying. The Stock Grader data shows investors are already doing the sorting: 9,140 prompts in the week of October 19, including 118 that explicitly mentioned “energy,” and 43 A-rated energy transport stocks from a single search. A strong rating is a starting point, not a buy signal on its own — investors still need to know how a company makes its money. And the $31.5 trillion figure is the author’s belief about America’s energy transformation over the next 15 years, not a guaranteed return. The opportunity, if it comes, will sit with the companies that move, process, and export the extra oil and gas, not with every energy name at once.

What it means for employees

For employees in energy, the outlook in this article is positive. If American oil and natural gas production expands as the author expects, more energy must move through pipelines, processing facilities, and export terminals, and that means work for the people who build, run, and maintain that infrastructure. That is the longer-term jobs story behind the $31.5 trillion transformation the author describes.

There is a contrast with the AI side of the story. AI and data center stocks are reporting phenomenal sales and earnings growth, yet they are being punished by financing fears, so workers in that build-out face more uncertainty about the pace of spending. In energy, by contrast, high prices and strong earnings growth are pulling investment in, at least for now.

What it means for customers

For customers, the energy boom is first a bill, not a benefit. The average price of gasoline in the U.S. is $4.28 per gallon, according to the EIA, more than 40% higher than in October 2025, and diesel has surged more than 70% year over year to $6.28 per gallon. Those prices are driven primarily by attacks on Saudi Arabia, even though exports through the Strait of Hormuz have topped 24 million barrels per day, above prewar levels.

That squeeze is exactly what is lifting energy companies’ earnings, so customers and shareholders are on opposite sides of the same price move. In the longer term, the author argues that expanding American oil and natural gas production, and the pipelines, processing facilities, and export terminals to move it, could create extraordinary opportunities — but for households today, the cost shows up at the pump, in higher fuel bills and in the prices of goods that depend on diesel to move.

Note: Investment calculations and projections are for illustrative purposes only. Market conditions change frequently. Consult a qualified financial advisor before making investment decisions.