Michael Gable, founder of Fairmont Equities, says Woodside is emerging as a clear beneficiary of a rotation back into energy, and he reckons the rally may only be getting started.

Speaking on Switzer Investing TV this week, Gable acknowledged that many investors have a bruising history with Woodside Energy.

“Everyone’s got a story about buying Woodside and losing money,” he said. “It’s just one of those things.”

But he now sees a different setup.

“I do think it’s a buy.”

Why now?

Gable argues the broader backdrop for energy is strengthening. His portfolio already includes exposure across the sector (uranium, international energy stocks, coal, and oil and gas) and he believes oil prices are poised to trend higher.

“As it starts to become clearer that energy’s going up, money tends to go straight to the bigger cap stocks. The safer ones,” he said.

If oil prices rise and demand proves stronger than forecasts, particularly if supply fails to keep pace, Gable believes Woodside becomes the default option for Australian investors seeking exposure.

“It’s the big, liquid name. It’s the easy one. If I just need energy exposure, that’s where I go.”

That dynamic, he suggests, means Woodside is likely to move first - and more decisively - than smaller peers.

The technical case

Beyond fundamentals, Gable says the chart is beginning to turn constructive.

He notes the stock has been breaking through a major resistance level — a technical indicator suggesting momentum may be building.

“We’ve only been in this one for the last few months,” he said. “But it’s now starting to break through a major resistance line.”

His expectation: over the next three to six months, the stock could trade into the high $30s.

A stock-picker’s market returns

More broadly, Gable believes market conditions are shifting away from a narrow, momentum-driven environment dominated by mega-cap growth names.

Previously, he said, it was difficult to outperform a market led almost entirely by the biggest stocks.

“You just bought the big names on the dip,” he said. “It was hard to outperform when everything was moving higher together.”

Now, he sees rotation — and with it, opportunity.

“If there is a rotation — and I do think there is — then we know which stocks to park to the side and which ones to move into. And you can do really well.”

The implication is clear: investors looking for upside may need to look beyond tech and into sectors positioned to benefit from shifting capital flows.

In Gable’s view, energy — and Woodside in particular — is one of those places.