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Best Energy Stocks

Back to libraryDavid Rodeck, Farran PowellJul 11, 2026
Best Energy Stocks

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Best Energy Stocks

HF Sinclair Corp. (DINO)

HF Sinclair Corp. (DINO)

Market Cap

$12.5 billion

1-Year Performance

69%

Dividend Yield

2.8%

HF Sinclair Corp. (DINO)

$12.5 billion

69%

2.8%

Editor's Take

Headquartered in Dallas, HF Sinclair Corp. is an independent energy company. It manufactures and sells gasoline, diesel fuel, jet fuel, lubricants, asphalt and other products.

The company was established in 2022 through the merger of HollyFrontier Corp. and The Sinclair Companies. HF Sinclair Corp. has production facilities in the U.S., Canada and the Netherlands, and has the capability to process 678,000 barrels of crude oil per day.

Investors will like that some analysts view the stock as undervalued relative to its peers on a forward price-to-earnings (P/E) basis, and that it offers a relatively healthy dividend yield of nearly 3%.

Pros & Cons
  • Attractively priced based on forward P/E
  • Major firms are bullish on the stock
  • Dividend yield of nearly 3%
  • Leadership changes might bring shaky market performance
  • Margin flexibility is limited due to higher operational costs than other energy stocks

Marathon Petroleum Corp. (MPC)

Marathon Petroleum Corp. (MPC)

Market Cap

$74.5 billion

1-Year Performance

54%

Dividend Yield

1.5%

Marathon Petroleum Corp. (MPC)

$74.5 billion

54%

1.5%

Editor's Take

Marathon Petroleum Corporation is a petroleum refining, marketing and transportation company headquartered in Findlay, Ohio. The company split from Marathon Oil in 2011 and operates the largest petroleum refinery in the U.S., with the Galveston Bay refinery in Texas City, Texas. MPC has a processing capacity of 3 million barrels per day across its 13 U.S. refineries.

MPC stock carries a bullish consensus among analysts. The yield is a little paltry compared to other energy stocks, but the company has consistently increased its dividend since its spinoff in 2011.

Pros & Cons
  • A bullish consensus from multiple analysts
  • The stock has recently seen a massive run in early 2026
  • Low dividend yield of less than 2%
  • Analysts see a ceiling ahead for revenue growth, with negative margins expected in 2027

EOG Resources Inc. (EOG)

EOG Resources Inc. (EOG)

Market Cap

$69.1 billion

1-Year Performance

8%

Dividend Yield

3.1%

EOG Resources Inc. (EOG)

$69.1 billion

8%

3.1%

Editor's Take

EOG Resources is an independent crude oil and natural gas exploration company headquartered in Houston. The company mainly deals with crude oil, natural gas liquids and natural gas.

The EOG in the company’s name once stood for “Enron Oil & Gas Company,” as it was a major operating unit of the failed energy conglomerate Enron. EOG split off from Enron in 1999 and survived the decline and fall of its former parent. Today, most of the company’s operations are in the U.S., although it also has an international presence.

EOG’s total production is expected to be over 1.39 million barrels of oil equivalent each day.

EOG has done gangbusters in terms of quarter-over-quarter earnings per share (EPS) growth, with four consecutive EPS beats. To top it off, the stock offers a decent dividend yield, too.

Pros & Cons
  • The company has low-cost wells and is one of the more capital-efficient U.S. producers
  • Has beaten earnings-per-share estimates for the last four quarters as of Q1 of fiscal 2026
  • Analysts mostly consider it a “buy” or “hold”
  • Stock may be at a valuation ceiling
  • Underperforms compared to competitors and might underwhelm investors

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.

CompanyTickerMarket CapP/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
Targa Resources Corp
TRGP
$57.55B
27.31
Williams Cos Inc
WMB
$90.92B
32.66

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.

CompanyTickerMarket CapDividend 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%
Schlumberger Ltd
SLB
$69.51B
2.52%
DT Midstream Inc
DTM
$14.97B
2.40%

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.