7
Best Energy Stocks

Featured Partner
Best Energy Stocks
HF Sinclair Corp. (DINO)
Marathon Petroleum Corp. (MPC)
EOG Resources Inc. (EOG)
Methodology: How We Score Our Products
Our curated list of the best energy stocks to buy now is built using strict criteria. We only selected energy stocks traded on U.S. exchanges that meet the following requirements:
Market Capitalization of $20 Billion or More: Companies with a market cap of over $20 billion typically dominate their industries and possess competitive advantages.
Analyst Consensus of “Strong Buy”: A high number of “strong buy” ratings from analysts suggest the stock is expected to outperform the broader market.
Altimeter Overall Grade of “B” or Higher: Only stocks rated “B” or above by Altimeter are included. This grade reflects factors like profitability, earnings stability, valuation and growth expectations. Stocks that score “B” or better rank in the top quarter of over 5,000 companies in Altimeter’s database, signaling strong potential for improving returns and favorable valuations. To select the best energy stocks, we reviewed the Altimeter grades of more than 250 energy stocks.
Positive Earnings-Per-Share (EPS) Growth: We prioritized companies with positive EPS growth in the current year, with positive quarter-over-quarter EPS growth.
What Are the Best Energy Stocks To Buy Now?
The table below highlights the energy stocks with both respectable one-year performance and a strong price-to-earnings (P/E) ratio.
| Company | Ticker | Market Cap | P/E |
|---|---|---|---|
|
Antero Resources Corp
|
AR
|
$10.89B
|
11.39
|
|
Baker Hughes Co
|
BKR
|
$55.06B
|
17.70
|
|
DT Midstream Inc
|
DTM
|
$14.97B
|
32.52
|
|
Enterprise Products Partners L.P.
|
EPD
|
$79.53B
|
13.67
|
|
Expand Energy Corp
|
EXE
|
$21.82B
|
6.80
|
|
TechnipFMC plc
|
FTI
|
$26.43B
|
25.37
|
|
Halliburton Co
|
HAL
|
$28.36B
|
18.63
|
|
Kinder Morgan Inc
|
KMI
|
$71.13B
|
21.57
|
|
Oneok Inc
|
OKE
|
$54.78B
|
15.53
|
|
Texas Pacific Land Corp
|
TPL
|
$30.19B
|
59.98
|
Pros & Cons of Investing in Energy Stocks
Investing in the energy sector may be a good option for those wanting to diversify their portfolios and include stocks that offer reliable dividend yields.
Pros:
- Energy stocks are largely sheltered from inflation impacts
- A growing sector, especially due to artificial intelligence (AI) and data centers
- Stable cash flow
Cons:
- Pricing volatility due to exposure to commodity price swings and geopolitical instability
- Resources are limited
- Sensitive to high interest rates
Energy Stocks That Offer the Best Dividends
The table below highlights the energy stocks with high dividend yields. All the following top energy stocks offer at least 2% in dividend yield and hold at least a “hold” analyst rating or higher.
| Company | Ticker | Market Cap | Dividend Yield |
|---|---|---|---|
|
Western Midstream Partners LP
|
WES
|
$17.23B
|
8.53%
|
|
MPLX LP
|
MPLX
|
$57.16B
|
8.13%
|
|
Plains All American Pipeline LP
|
PAA
|
$15.71B
|
7.65%
|
|
Energy Transfer LP
|
ET
|
$65.79B
|
7.16%
|
|
Plains GP Holdings LP
|
PAGP
|
$18.49B
|
6.75%
|
|
Enterprise Products Partners LP
|
EPD
|
$79.53B
|
6.14%
|
|
Oneok Inc
|
OKE
|
$54.78B
|
4.95%
|
|
Kinder Morgan Inc
|
KMI
|
$71.13B
|
3.72%
|
|
Permian Resources Corp
|
PR
|
$15.41B
|
3.50%
|
|
Williams Companies Inc
|
WMB
|
$90.92B
|
2.84%
|
Featured Partners
The author(s) held no positions in the securities discussed in the post at the original time of publication.
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Frequently Asked Questions (FAQs)
How do energy stocks perform in a volatile market?
Energy stocks can be beneficial in a volatile market because they are cushioned from inflation fluctuations. This is because they are typically tied to commodities like oil and gas that often rise in price during times of market instability. These commodities can experience sharp price swings, though, which impact the stock’s performance.
What is the difference between traditional energy and renewable energy?
Traditional energy includes oil, natural gas, coal, nuclear energy and other energy from nonrenewable natural resources. These have been used for centuries to meet energy needs. Renewable energy is energy created from natural resources, like the sun and water, and includes solar, hydropower and wind. This type of energy is infinite and is safer for the environment.
Traditional energy companies, particularly those with strong dividend histories, have historically acted as a modest buffer in turbulent markets because they generate real cash flow. Renewables, by contrast, tend to trade more like growth stocks. They are rate-sensitive; they depend heavily on policy continuity, and when investors get nervous, they rotate out of speculative growth first. That means renewables often get hit harder in a downturn.
– Jeff Judge, a certified financial planner at Chesapeake Financial Planners in Forest Hill, Maryland.
Are renewable energy stocks a good investment?
Renewable energy stocks may be a good investment because they help diversify a portfolio, often offer modest dividends and are representative of a sector that is evolving and growing rapidly. They are also a great way to get into energy stocks without investing in traditional energy companies that deal heavily with fossil fuels and greenhouse gas emissions.
That said, there are also risks with renewable energy stocks. In the past, they’ve had issues with high interest rates, supply chain disruptions and uncertainty regarding policy and administrative approvals.
Whether they are a “good” investment for you and your portfolio depends on your investment timeline and the type of energy stocks you choose.