In this article, we are going to discuss the 10 most promising energy stocks to buy now.
The S&P Energy index has surged by 19.11% since the beginning of 2026, comfortably outperforming the gains of 9.41% posted by the overall S&P 500 during the period. The energy sector received a significant boost from the US-Iran war, which tightened global fuel supplies and drove prices to multi-year highs.
As a result, the US Big Oil companies are expected to report their strongest quarterly results since 2022 this month. According to analyst estimates compiled by LSEG, Exxon Mobil is projected to deliver about $15.9 billion in adjusted net income in Q2, more than triple what it achieved in Q1. Similarly, Chevron’s adjusted net profits are forecasted at around $9.9 billion, also more than triple its first quarter.
While a portion of this increase can be attributed to a reversal of Q1 accounting losses tied to derivatives used to hedge crude and refined product exposure, analysts are convinced that the broader gains come from more robust market fundamentals.
Notably, with profits soaring, BMO Capital Markets expects these companies to also accelerate their stock buybacks in the latter half of 2026, extending a post-pandemic trend of prioritizing shareholder returns over production growth.
With that said, here are the Most Promising Energy Stocks to Invest in.
Our Methodology
To collect data for this article, we referred to screeners to identify large-cap energy stocks that had an upside potential of over 30% according to Wall Street analysts, as of July 7. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Most Promising Energy Stocks to Buy in 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Eni S.p.A (NYSE:E)
Upside Potential as of July 7: 30.29%
Eni S.p.A. (NYSE:E) operates as an integrated energy company in Italy, the rest of Europe, the United States, Asia, Africa, and internationally.
On July 3, JPMorgan analyst Matthew Lofting trimmed the firm’s price target on Eni S.p.A. (NYSE:E) from €28 to €25.50, but maintained an ‘Overweight’ rating on the shares. The lowered target still implies a robust upside of over 25% from the current levels.
Similarly, Erste Group analyst Hans Engel also turned more bearish on Eni S.p.A. (NYSE:E) when it downgraded the stock from ‘Hold’ to ‘Buy’ earlier on June 25. The analyst firm did not assign a specific price target to the shares (read more details here).
The Italian energy giant is guiding an underlying oil and gas production growth of 3-4% for FY 2026. Meanwhile, its gross capex and net capex for the year are targeted at €7 billion and €5 billion, respectively. The company is set to report its Q2 2026 results on July 29.
9. Chevron Corporation (NYSE:CVX)
Upside Potential as of July 7: 31.53%
Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.
Chevron Corporation (NYSE:CVX) is a promising addition for any portfolio, thanks to the company’s strong global presence, low-cost and long-lived global assets, solid track record of dividend growth, and high yield of 4.09%. The energy behemoth has grown its dividends for 39 consecutive years, and plans to repurchase between $10 billion and $20 billion of its stock each year.
To help sustain its high shareholder returns, Chevron expects to grow its free cash flow at a CAGR of more than 10% through 2030, assuming oil averages $70 a barrel. A major growth catalyst for the company is its recent acquisition of Hess, which has granted it access to the vast and low-cost assets in Guyana. Moreover, the Tengizchevroil expansion in Kazakhstan is also projected to add around $6 billion annually to the firm’s free cash flow.
Chevron Corporation (NYSE:CVX) has also emerged as a key winner from the US action in Venezuela earlier this year, as it had already been operating under a special US license in the country. The American oil major’s joint ventures with PDVSA are currently responsible for about a fourth of the South American country’s total output, equal to 260,000 barrels per day of crude. These numbers could receive a boost as Chevron’s executives indicated earlier this year that the company could increase this output by about 50% in the next two years within its existing footprint.
Meridian Hedged Equity Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2026 investor letter:
“Chevron Corporation (NYSE:CVX) operates as a globally diversified integrated energy company, with upstream crude oil exploration and production complementing its downstream refinement and retail operations. Our investment thesis is anchored in the company’s strict capital discipline, its highly efficient Permian Basin footprint, and the strategic benefits expected from the integration of recently acquired Hess Corporation. Together, these strengths support the potential for durable free-cash-flow generation, consistent dividend growth, and steady share repurchases across commodity cycles. Chevron’s stock benefited in March from a sharp rise in oil prices following supply disruptions, but performance was also supported by better-than-expected earnings earlier in the quarter. These results reinforced confidence in the company’s management team, operational strength and financial discipline. We maintained our position throughout the quarter.”
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