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.”
8. TotalEnergies SE (NYSE:TTE)
Upside Potential as of July 7: 32.15%
TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.
On July 2, TD Cowen trimmed its price objective on TotalEnergies SE (NYSE:TTE) from $106 to $102, but reaffirmed a ‘Buy’ rating on the shares. The lowered target, which still implies an upside potential of almost 31% from the current levels, comes after the firm revised its estimates in the oil majors space as part of a Q2 earnings preview.
According to the analyst, the recent “rapid correction” in crude oil prices and equities following the signing of an MoU between the US and Iran has created “pockets of opportunity” in the energy sector. TD Cowen noted that it favors Shell, Chevron, and TotalEnergies as we head into the second-quarter earnings season.
Meanwhile, earlier on June 23, CICC launched coverage of TotalEnergies SE (NYSE:TTE) with an ‘Outperform’ rating and a price target of €90 (read more details here).
Antipodes Global Strategy stated the following regarding TotalEnergies SE (NYSE:TTE) in its Q1 2026 investor letter:
“TotalEnergies SE (NYSE:TTE) surged higher towards the end of the Quarter supported by volatile and elevated oil prices, which lifted earnings expectations and cash flow outlook. Heightened geopolitical tensions drove sharp swings in Brent Crude, benefiting integrated energy producers with strong upstream leverage. The rally was reinforced by solid CY25 results and constructive 2026 guidance, including expected production growth, rising LNG volumes and continued expansion in integrated power, which further underpinned investor confidence.”
7. Occidental Petroleum Corporation (NYSE:OXY)
Upside Potential as of July 7: 32.60%
Occidental Petroleum Corporation (NYSE:OXY) is an international energy company that produces, markets, and transports oil and natural gas.
On June 29, Morgan Stanley trimmed its price estimate on Occidental Petroleum Corporation (NYSE:OXY) from $74 to $68, but maintained an ‘Equal Weight’ rating on the shares. The lowered target still reflects an upside of over 39% from the current price level.
The analyst firm revised its estimates to reflect the recent changes in global energy prices. The WTI crude oil price has declined by over 60% from its recent multi-year high and is now hovering close to its pre-war levels following the US-Iran memorandum of understanding on June 14.
Occidental Petroleum Corporation (NYSE:OXY) recently adjusted the midpoint of its full-year 2026 production guidance to 1.44 million BOE per day. It also reaffirmed its capital guidance range of $5.5 billion to $5.9 billion for the year. Occidental’s principal debt stood at $13.3 billion at the end of the first quarter, and the company has a near-term target to reduce this figure to $10 billion.
6. EQT Corporation (NYSE:EQT)
Upside Potential as of July 7: 33.65%
Next on our list of the Most Promising Energy Stocks is EQT Corporation (NYSE:EQT). It is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin.
On July 2, Jefferies analyst Lloyd Byrne trimmed the firm’s price objective on EQT Corporation (NYSE:EQT) from $77 to $75, but kept a ‘Buy’ rating on the shares. The revised target still indicates an upside of almost 45% from the current levels, and comes as part of a preview ahead of the company’s upcoming Q2 report on July 21.
Jefferies expects EQT to deliver an EBITDA of $1.13 billion in the second quarter, falling just short of the Wall Street estimates of $1.19 billion.
EQT Corporation (NYSE:EQT) generated a record high free cash flow of over $1.8 billion in the first quarter, as it delivered sales volumes above the high end of guidance into peak winter pricing. At the same time, the company’s cash operating expenses and capital costs came in below the low end of guidance due to improved efficiencies.
Aside from paying dividends, the natural gas firm used this cash to bolster its balance sheet and retire more than $1.7 billion of senior notes. EQT remains confident in achieving its net-debt target of $5 billion by year-end.
Eagle Capital Management, an investment management company, stated the following regarding EQT Corporation (NYSE:EQT) in its Q1 2026 investor letter:
“EQT Corporation (NYSE:EQT) is the largest pure play U.S. natural gas producer. The company has long– teens in the lived assets, with decades of inventory. It also has a low– cost structure due to its enviable position in the Marcellus shale and captive pipeline assets. Management has an excellent track record of making wise strategic and capital allocation decisions. Despite selling a commodity product, EQT is a high quality business with operating margins exceeding those of 80 90% of S&P 500 companies. Natural gas in the U.S. trades at a wide discount to global prices. The combination of the inflection in U.S. electricity demand, LNG export growth, and disruption in the Middle East may narrow this discount over the next 5 10 years. We expect EPS growth in the mid teens.”
While we acknowledge the potential of EQT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EQT and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Most Promising Energy Stocks to Buy Now.
Disclosure: None. Follow Insider Monkey on Google News.
