Every investor knows that when just about everyone on Wall Street is thinking one way, it’s time to don sneakers and quickly head in the opposite direction.

Some rules, however, were made to be broken, and that’s what several savvy pros say should be done with those torrid energy stocks, which have outstripped the market the past 3 1/2 years, many zooming 100%-plus in that period.

In other words, they say, don’t let those giant stock gains scare you: Stick with energy despite numerous forecasts of both lower oil prices ahead — largely reflecting an economic slowdown in key global areas, including America — and falling industry earnings.

After record profit showings the past four years, thanks largely to ballooning oil prices, the energy sector’s per-share earnings tumbled 10% in last year’s fourth quarter and consensus Street estimates project further shortfalls in the March, June, and September quarters, and about a 5% drop for the entire year. What’s more, many industry players are expected to post additional declines in 2008.

Hardly cheery stuff if you own an energy stock, but judging from a cursory check of some energy trackers, there’s no need to panic. Granted, falling earnings invariably add up to falling stock prices, but that’s not the way Wall Street is eyeing the energy sector, which, as measured by the S&P 1500 Energy Index, is up 7.4% this year, after a 14.6% rise in 2006.

The overriding view I get is that the run in energy stocks is far from over and further substantial gains are in the offing.

Veteran investment adviser Richard Moroney sums up the mood: “It’s way too soon to say goodbye to energy because it still has plenty of juice.”

The editor of one of the country’s most well-regarded investment newsletters, the Dow Theory Forecasts, Mr. Moroney notes that four of the letter’s six favorite energy stocks are expected to turn in lower earnings this year. They are Chevron, which is projected to post a 9% decline; ConocoPhillips, 15%; Exxon, 6%, and Valero Energy, 8%. The remaining favorites, Ensco International and Oceaneering International, are expected to chalk up 2007 earnings increases of 42% and 19%, respectively.

Although afflicted with declining earnings, this group is pegged as potential 15% to 25% gainers during the next 12 months.

Taking note of the falling profit forecasts, Mr. Moroney, citing strong returns and tremendous cash flows, observes that there’s more to energy stocks than just earnings.

What happens, though, if as many Wall Street pros expect, oil prices fall? Mr. Moroney rates such an assumption highly suspect on a number of counts, chief among them continuing Middle East violence, the ongoing threat of supply disruptions, and projections of hefty global demand (on the order of a more than 35% increase by 2030), with emerging markets in Asia, including economic powerhouses China and India, accounting for nearly half of the rise. Further, the futures markets project oil prices to rise steadily this year and hover around $68-$70 a barrel in 2008.

For risk-oriented investors who want a bigger bang for their buck, Mr. Moroney favors three smaller names. Rated potential 25% to 30% gainers during the next 12 months, they are Dawson Geophysical, Helix Energy Solutions Group, and Unit Corp.

Oppenheimer & Co.’s veteran energy analyst, Fadel Gheit, echoes similar positive thoughts about the sector and sees higher, not lower, oil prices ahead, with the midto-high $60s the low for the balance of the year and a year-end wrapup above $70. “We’re in the process of establishing new high lows in oil,” he says.

Mr. Gheit points to a number of unknowns that could push oil well above $70, such as unrest in Nigeria, terrorist activities in the Middle East, problems stemming from Nicaragua’s takeover of the operations of the major oil companies, and possible hurricanes in the Gulf of Mexico, which in 2005 shut down 2 million barrels a day.

“No one has the answers,” he says. “If any serious problems develop in these areas, who knows how high oil could go? It could be the sky’s the limit.”

The analyst figures the cheapest oil stocks are those most highly leveraged to a higher price for crude, among them ConocoPhillips, British Petroleum, Murphy Oil, and Occidental Petroleum.

His favorite energy play is natural gas, which, unlike oil, is difficult to bring into this country, he points out. He also cites a shortage of liquid natural gas around the world. Natural gas is now priced at about $7.80 per thousand cubic feet. If there’s a cold winter, Mr. Gheit says, natural gas could easily run up to the $10-$12 range.

His top gas picks — all energy stock laggards — are Anadarko Petroleum, Apache Corp., and Devon Energy.

How,” Mr. Gheit concludes, “can you not be a bull on energy?”

dandordan@aol.com