That compares to a gain of just 10.8% for the broad-market S&P 500, and a rise of 11.3% for the blue-chip Dow Jones Industrial Average. In addition to that immediate boost, the company initially expected to capture at least $500 million in annual cost and capital savings within the first full year following the deal. It has since boosted its synergy target to over $1 billion in the next year. TotalEnergies’ dividend yield is an attractive 5.7%, one of the highest among its closest peers. The yield has also risen materially over the past year thanks to weakening energy markets. That’s bad news, but it’s also exactly when you will most likely get the most attractive price (and highest dividend yield).
If you’re investing in energy for income, it’s very attractive to find an explorer, such as Coterra, that offers a consistent payout but still has the potential for big distributions when times are good. Valero refines and markets fuels and petrochemical products worldwide. Though perhaps not the first name you think of given its overseas operations and relatively modest market cap, Eni is nevertheless poised to deliver high octane results for investors. London-headquartered Shell is a great example of a dominant integrated energy company with which U.S. investors are comfortable, despite the company being based outside the U.S. Our editors are committed to bringing you independent ratings and information.
Suncor Energy (SU)
This gives investors the chance to add up to 24.6% upside to their portfolio should they choose to buy. PDCE trades at just 7.7 times estimated earnings for 2022 – even as analysts project average annual EPS growth of 7% over the next three to five years. Analysts like this small-cap’s base of assets and its ability to punch well above its weight in generating free cash flow (FCF). Some recent dealmaking, a diversified business and comparatively low cost of supply has the Street stampeding into the bull camp for Diamondback Energy (FANG, $77.67). “We still view PSX as a long-term core holding in energy. PSX’s business should justify a premium valuation relative to the group.” The Dow Jones U.S. Oil & Gas Index, which measures the performance of nearly three dozen stocks across the industry, was up 27% for the year-to-date through April 19.
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NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. You can diversify your portfolio with oil stocks and even diversify amongst other oil stocks to protect yourself that much more.
Before investing, your individual circumstances should be considered, and you may need to seek independent financial advice. While Transocean currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on…
PDC Energy
On the other hand, Brazil is a country with serious reputational problems among investors, and the recent election of socialist Lula to the Best oil stock presidency has spooked markets. Riots storming several government buildings by his opponent’s supporters did not help either. The company has also used this renewed profitability to reimburse debt bringing net debt from $79B in 2019 to $37.6B in Q1 2023.
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As a further nod to the future, Eni is also undergoing a significant transition away from fossil fuels as it targets an 80% reduction in its carbon footprint by 2040. Her team covers credit scores, credit reports, identity protection and ways to avoid, manage and eliminate debt. Analysts note that the deal enhances PXD’s position in the Midland Basin, which has some of the strongest well economics in the greater Permian Basin.
Valero Energy (VLO)
The best performing oil stock in the last 12 months is EQT Corp (EQT), which is up 51.43%. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial.
Canadian Natural Resources Limited (CNQ)
- Instead of betting on oil producers, an easier way to make money from oil is simply owning the land that contains oil.
- Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally.
- Overall, though, it’s important to remember that oil and natural gas stocks, like the companies they represent, will likely do better if energy prices are high.
- Valero Energy is a leading international manufacturer and marketer of transportation fuels and petrochemical products.
- This gives investors the chance to add up to 24.6% upside to their portfolio should they choose to buy.
Two oil stocks with notable catalysts are ConocoPhillips (COP 0.96%) and Chevron (CVX 1.42%). That’s one of the many reasons they’ve risen to the top of my buy list this year. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people around the world achieve their financial goals through our investing services and financial advice. Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer. To the best of our knowledge, all information in this article is accurate as of time of posting. In our educational articles, a “top stock” is always defined by the largest market cap at the time of last update.
- Not only can countries who produce oil influence prices, but also the entire oil cartel, OPEC (Organization of the Petroleum Exporting Countries), can do the same.
- The industry with the best average Zacks Rank would place in the top 1% of Zacks Ranked Industries, while the industry with the worst average Zacks Rank would place in the bottom 1%.
- Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines.
- The cost of extracting and refining crude oil varies depending on geographical location, technology and regulatory environment.
- With a supply cost that low, ConocoPhillips can cash in on $70 crude oil.
Valero is committed to operational excellence, safety, and environmental stewardship. The company prioritizes investments in technology and innovation to enhance efficiency, reduce emissions, and meet evolving regulatory requirements. Forbes’ expert analysts have pinpointed the 12 superstars poised to ignite returns in 2024. Don’t miss out—download 12 Stocks To Buy Now and claim your front-row seat to the coming boom. Qualitative factors were considered to evaluate each company’s competitive advantages, strategic initiatives and management effectiveness.
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OPEC, a cartel of oil-exporting nations that coordinates oil policies, plays a significant role in oil prices. By adjusting supply, OPEC can cause significant fluctuations in the price of oil. However, oil companies operating independently of OPEC can also impact prices through capital allocation decisions that affect supply. Meanwhile, it boosted its share repurchase rate from $5 billion annually to $7 billion. That has it on track to retire all the equity issued to acquire Marathon Oil within the next two to three years.
Investors should conduct thorough research and consider their risk tolerance and investment objectives before committing to gas and oil stocks for the long term. Moreover, oil prices influence investment decisions across the oil and gas value chain. During high prices, companies are incentivized to increase investment in exploration and production activities to capitalize on elevated margins. Conversely, companies often scale back investment when prices plummet, reducing exploration efforts and project delays.