Financial Link News on October 10th (Editor Zhou Ziyi) Wells Fargo & Co recently pointed out that the energy industry will be the most profitable industry in the US stock market, with integrated oil and midstream energy being the most promising sub-sectors.

Wells Fargo & Co Investment Research Institute (WFII) under its Global Securities Research team (GSR) has listed in a new release what they consider the most bullish segmented industries in the S&P 500 index.

The bank's analysts believe that despite possible ongoing macroeconomic fluctuations, they can see that the long-term fundamentals of energy stocks will remain robust.

The report states, "Energy companies will continue to prioritize capital discipline and provide competitive shareholder returns through dividends and share buybacks. We believe that recent industry consolidation has improved capital efficiency, with reasonable valuations and significant improvements in company balance sheets over the past few years."

Analysts also believe that integrated oil companies will be favored due to their scale, financial flexibility, and diversification in the energy value chain; and high-quality midstream energy companies are also considered promising.

But Wells Fargo is not bullish on refining companies, "because we expect refining profit margins to remain highly volatile due to global capacity increases and fluctuations in global product demand."

As of Wednesday's (October 9th) close, the S&P 500 index's energy sector as a whole rose by 0.5%, with Exxon Mobil up by 0.04%, Schlumberger up by 0.16%, and natural gas pipeline company Kinder Morgan rising by 0.69%.