Halliburton’s extensive global presence and established relationships with major oil and gas operators provide a solid foundation for continued growth. The company’s strong customer base and reputation for reliability and innovation make it a preferred partner for energy companies seeking to optimize their operations and maximize returns on investment. Pioneer Natural Resources is a prominent independent oil and gas exploration and production firm headquartered in the United States. Widely recognized for its pioneering advancements in drilling and production technologies, the company primarily operates in the Permian Basin, a renowned oil-rich region globally.
Finally, the firm has a small renewables portfolio primarily focused on onshore and offshore wind projects. Aside from its attractive financials, Equinor is also noteworthy for its planned evolution beyond oil and gas in the long term. Specifically, the company is planning to move from allocating just 4% of its budget toward renewable energy sources in 2020 to 30% by 2025 and 50% by 2030.
How to find the best oil stocks
While the broader S&P 500 index is up by roughly 20% this year, the energy sector as a group has underperformed significantly in 2023. In contrast, oil stocks were some of the few shining stars during the bear market of 2022. Targa Resources is an oil and gas midstream company with a market cap of $47.04 billion. Price continues higher in January 2025 after a strong up move from the early May 2024 low. The stock on this chart has not traded below its 50-day moving average or its 200-day moving average. OPEC+ had agreed to boost production amid fears of a global economic slowdown, which would drive down demand for oil.
Best Commodities Stocks & ETFs
Current earnings per share (EPS) forecasts are set for $3.90 in the same quarter next year, which is a massive boost of 55.3% from today’s $2.51 level. Given that stock prices tend to follow underlying EPS growth, it would be no surprise for investors to see analysts from the UBS Group reiterate double-digit upside potential. After this year’s World Economic Forum meeting in Davos, Switzerland, President Trump laid out many new policies for the entire world—and financial markets—to see. One of the main pressing points in the conference was the need for lower oil prices and the new president’s demand for interest rates to be lowered immediately, leaving investors with a couple of conclusions to make. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments.
- DT Midstream is an oil and gas exploration company with a market cap of $11.34 billion.
- The U.S. committed to provide Europe with at least 15 billion cubic meters more of liquified natural gas by the end of 2022.
- Oil has been the lifeblood of economic activity since the invention of the internal combustion engine.
- While refiners and midstream companies have generally performed well due to resilient transportation and processing demand, exploration and production firms have faced challenges in securing new investments.
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It’s the world’s largest producer of bitumen, which is a byproduct of crude oil used in asphalt and roofing tiles. It also has operations in the oil sands of Alberta and refineries in Eastern Canada and Colorado. Suncor is a major Canadian oil company that focuses on both upstream oil production and refinement and downstream retail and sales through its Petro-Canada gas stations. Recently, Enbridge has even stretched into renewables, including wind and hydrogen energy.
Top Oil Stocks to Buy Before 2024 Is Over
We used the following criteria to build this list of the best oil stocks. The current HF Sinclair is a diversified energy company that refines and sells products such as gasoline, jet fuel, renewable diesel, specialty petrochemicals and more. Like Valero, the refinery operations of DINO allow it to insulate itself from as much volatility as we’ve seen in firms that depend on the current market price of fossil fuels. Petrochemicals are expected to overtake road transport as the primary driver of oil demand growth. By 2050, the IEA projects global oil demand to average 93.1 million b/d, 4.3 million b/d lower than its prior estimate under the Stated Energy Policies Scenario (STEPS). You can see how the stock has traded higher steadily since the early May low.
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But diversified investment portfolios should always include a wide array of stocks and sectors, regardless of which sectors and stocks are hot. Simultaneously, China’s factory output growth slowed, and persistent weakness in its property sector added to investor concerns about the economic health of the world’s largest crude importer. The stock last week broke out above the late July high resistance and established a new high on good volume. The 50-day moving average in early December crossed above the 200-day moving average, a generally positive indicator.
- OPEC, a cartel of oil-exporting nations that coordinates oil policies, plays a significant role in oil prices.
- CFRA’s Glickman is very much in the majority when it comes to his stance on the oil stock.
- As of this writing, WTI crude oil is trading at $77 a barrel, down from more than $90 per barrel at the start of November.
- As such, investors in oil and gas stocks must closely monitor crude oil price dynamics to navigate market volatility and identify potential investment opportunities.
- The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
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That fuels the company’s view that it can deliver dividend growth within the top 25% of companies in the S&P 500 in the coming years. That’s because, as a production company, Devon is basically leveraged to rising energy prices. That move has left the company with a leveraged balance sheet, which will be easier to address if oil prices rise.
The company markets its products through a network of about 7,000 retail and wholesale outlets, including branded gas stations, convenience stores and truck stops. In addition to refining and marketing, Valero is actively involved in renewable energy initiatives. The Best oil stock company operates multiple ethanol plants and is a leading producer of renewable diesel, leveraging its refining expertise to produce low-carbon transportation fuels. Furthermore, Halliburton is committed to innovation and technological advancement, continually investing in research and development to drive industry-leading solutions.
At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent. Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas. In this article, we analyzed screeners and ETFs to pinpoint oil and gas industry stocks with an average share price upside potential of 15% or more as of market close on November 18, 2024. We ranked the top 10 stocks in ascending order based on their average share price upside potential. Additionally, we included hedge fund sentiment for each stock, as of Q3 2024, to offer readers deeper insights.
Furthermore, with oil prices declining and many crude oil stocks being down from their mid-2024 highs, the current developments may turn out to be a great long-term buying opportunity. Canadian Natural Resources Limited is a Canadian-based energy exploration and production company, ranking among the nation’s largest independent producers of crude oil and natural gas. CNQ boasts a diversified portfolio comprising conventional and unconventional oil and gas assets.
Whether you’re a seasoned investor or just venturing into the energy market, these carefully selected stocks offer the potential for growth and stability in your investment portfolio. Finding the best oil stocks to buy isn’t as easy as it was a few months ago. The price of crude oil ran up to a multiyear high of $120 a barrel shortly after Russia invaded Ukraine and again in mid-June as demand peaked with the summer driving season. However, oil prices have steadily fallen in recent months as concerns grow about the prospects of a global recession, and the impact that anti-Covid-19 lockdowns in China will have on energy demand.
