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potential ceasefire between the United States and Iran has been reached, the upside in energy stocks appears to be fully priced in.Broadly, energy investments are starting to get overbought, and for the following two stocks, it might be time to take profits.Interested in Entergy Corporation? Here are five stocks we like better.A fragile ceasefire appears to have been reached between the U.S. and Iran, which pushed down oil prices and helped stocks gain more than 2% following the announcement. That trend has persisted, with the S&P 500 up by over 3% since ceasefire news broke on Tuesday, April 7.The development highlights the ever-changing nature of geopolitical conflicts, but it also underscores the importance of taking profits on unexpected gains. Now that the energy sector is looking overbought, it might be time to take profits on some of 2026’s early winners.Energy has far and away been the best-performing sector in 2026. The Energy Select Sector SPDR ETF (NYSEARCA: XLE) is up nearly 30% year-to-date (YTD), which would have sent the entire S&P 500 soaring a few decades ago. But with the explosive growth of the Magnificent Seven and other mega-cap companies, the energy sector now accounts for less than 5% of the cap-weighted index. As a result, this year's market-leading performance hasn’t been enough to stem the tide of the index's decline.→ East West Bancorp: Confronting the Risks With Record Results However, now that a tenuous ceasefire has been reached, the energy sector is looking overbought and ready to lose some of the catalysts that propelled it earlier in 2026. In turn, some reasons investors might want to consider selling the sector due to a few challenges it will now face.The first challenge is a fading geopolitical risk premium. Even before the ceasefire was reached, the energy rally was starting to get long in the tooth. According to futures markets, investors have bet that oil will be above $90 per barrel through December amid structurally higher fuel and petroleum prices. Much, though not all, of the extra profit going to the oil and gas industry has been priced in, and de-escalation with Iran charging tolls for passage through the Strait of Hormuz is actually a headwind.→ Levi Strauss Gains as DTC Continues to Fuel Revenue GrowthTerms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersNQ=F Nasdaq 100 Jun 26 25,040.00 -241.25 (-0.95%)CL=F Crude Oil May 26 104.39 +7.82 (+8.10%)ES=F E-Mini S&P 500 Jun 26 6,797.50 -57.75 (-0.84%)YM=F Mini Dow Jones Indus.-$5 Jun 26 47,703.00 -426.00 (-0.89%)GC=F Gold Jun 26 4,711.90 -75.50 (-1.58%)PortfolioSign in to access your portfolioSign inTop gainersOGN Organon & Co. 8.83 +1.92 (+27.79%)XNDU Xanadu Quantum Technologies Limited 8.96 +1.31 (+17.12%)ALAB Astera Labs, Inc. 149.05 +19.59 (+15.13%)MANE Veradermics, Incorporated 68.80 +8.82 (+14.70%)TTMI TTM Technologies, Inc. 121.49 +13.96 (+12.98%)Top losersFSLY Fastly, Inc. 23.07 -6.39 (-21.69%)AKAM Akamai Technologies, Inc. 91.35 -18.26 (-16.66%)FICO Fair Isaac Corporation 922.37 -149.98 (-13.99%)SEZL Sezzle Inc. 59.71 -9.42 (-13.62%)NET Cloudflare, Inc. 166.99 -26.06 (-13.50%)Most activeNVDA NVIDIA Corporation 188.63 +4.69 (+2.55%)PLTR Palantir Technologies Inc. 128.06 -2.48 (-1.90%)HOLX Hologic, Inc. 76.01 +76.01 (0.00%)INTC Intel Corporation 62.38 +0.66 (+1.07%)CRWV CoreWeave, Inc. 102.00 +10.00 (+10.87%)Top economic eventsEarnings eventsMy earnings eventsEarnings events