In this article, we will look at the 10 Stocks That Will Skyrocket When Oil Prices Fall.
Oil prices continue to rise amid global efforts for peace in the Middle East. There is hardly a sector that hasn’t been negatively impacted by the elevated oil prices and supply constraints. Companies that benefit from higher oil prices have already seen their stock go up, but the rest of the economy is struggling. Transportation costs are going up as energy costs continue to rise. Companies that rely on raw materials derived from petrochemicals are seeing their supply systems sharply affected. The uncertainty is killing the market, and investors are fleeing.
On the flip side, it is also a well-established fact that markets rebound very quickly once the uncertainty goes away. Knowing which sectors are most likely to rebound can help generate incremental returns. That time could well be coming soon, as Goldman Sachs reassesses its oil price forecast. The research firm trimmed its Brent price target to $90 from $99 on April 8. Oil prices could fall more quickly than many anticipate, generating new opportunities for investors.
Best days in the market often come right after the biggest crash and in uncertain environments. Missing out on them can negatively impact long-term gains, making it important to stay invested in the right stocks before the rally arrives. This is why we decided to look at the 10 stocks that will skyrocket when oil prices fall.
Our Methodology
To come up with our list of 10 stocks that will skyrocket when oil prices fall, we first shortlisted the sectors that are negatively impacted by higher oil prices. These are businesses that rely on oil or oil-derived products, either as raw materials or as a significant energy cost in their operations. Once we had a list of these stocks, we filtered out the ones with a market cap of at least $2 billion and a consensus upside of at least 35%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds, and are ranked in ascending order of their potential upside.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on April 9.
10. Quaker Chemical Corporation (NYSE:KWR)
Based on CNN’s analyst ratings compilation, Quaker Chemical Corporation (NYSE:KWR) enjoys strong support from Wall Street analysts, with 4 out of 5 analysts rating the stock a Buy. It has a median price target of $175, implying a further 36% upside from the current levels.
Moreover, the stock is still trading below its lowest price target of $170. On February 27, Deutsche Bank analyst David Begleiter increased the firm’s price target on Quaker Chemical Corporation from $160 to $170 while maintaining a Buy rating.
In contrast to Deutsche Bank, RBC Capital cut its price target on Quaker Chemical Corporation on February 24. RBC Capital Analyst Arun Viswanathan reduced the firm’s price target on the stock from $190 to $184 while maintaining an Outperform rating. The firm pointed out that the stock reacted negatively after the company posted its fourth-quarter results and issued a soft outlook. It guided for mid-single-digit growth in sales and EBITDA, which falls slightly below the consensus expectation of around 10%.
Quaker Chemical Corporation operates as an industrial process fluids provider worldwide. It produces, markets, and develops different formulated specialty chemical products, as well as provides chemical management services. The company serves automotive, mining, aerospace, steel, and other companies.
9. Alaska Air Group, Inc. (NYSE:ALK)
On April 2, TD Cowen analyst Thomas Fitzgerald reiterated his Buy rating on Alaska Air Group, Inc. (NYSE:ALK) while lowering the firm’s price target. He cut the firm’s price target on the stock from $66 to $45. The downward-adjusted price target still offers an 14% upside from the current levels. The price target revision was part of the firm’s first-quarter earnings preview, where it reduced price targets across the airline sector.
According to the analyst, investors are becoming more cautious about the strength of travel demand, mainly due to expectations of prolonged higher energy prices and slowing credit card spending. As a result, TD Cowen’s estimates for the six major airlines are now below market consensus heading into the first quarter.
Earlier, on March 31, Goldman Sachs analyst Catherine O’Brien also took a similar stance on Alaska Air Group, Inc.. She lowered the firm’s price target on the stock from $68 to $61 while maintaining a Buy rating. The firm’s revised price target reflects an additional 54% upside from the current levels.
Alaska Air Group, Inc. is an airline company offering scheduled passenger and cargo services using Boeing jet aircraft across the United States. It also operates in parts of Mexico, Belize, Canada, Guatemala, Costa Rica, and the Bahamas. The company operates in the Hawaiian Airlines, Alaska Airlines, and Regional segments.
8. QXO, Inc. (NYSE:QXO)
On April 2, RBC Capital reaffirmed a Buy rating on QXO, Inc. (NYSE:QXO) while cutting its price target. Analyst Michael Dahl lowered the firm’s price target on the stock from $30 to $28.
A day earlier, QXO, Inc. finalized its acquisition of Kodiak Building Partners from Court Square Capital Partners for approximately $2.25 billion. This acquisition expands the company’s addressable market to over $200 billion and introduces a new lumber and building materials division, led by Kodiak co-founder Steve Swinney. The transaction was structured with $2 billion in cash, QXO, Inc. common stock consideration subject to a repurchase option, and employee rollover equity. The acquisition significantly enhances the company’s service capabilities and product offerings as it pursues aggressive growth and earnings expansion.
On the same day, QXO, Inc. also introduced a new Series C Convertible Perpetual Preferred Stock class. The preferred stock carries a 4.75% annual dividend based on a $10,000 stated value and provides voting rights on an as-converted basis. Holders also have the option to convert the preferred stock into common shares at an initial price of $23.25, with anti-dilution protections.
QXO, Inc. operates as a distributor of waterproofing, roofing, and complementary building products across Canada and the United States. It offers modified roofing, PVC roofing, commercial roofing & siding products, built-up roofing, low-slope metal roofing, TPO roofing, and others. The company is based in Greenwich, Connecticut.
7. MercadoLibre, Inc. (NASDAQ:MELI)
As reported by Reuters on March 25, MercadoLibre, Inc. (NASDAQ:MELI) said it will invest 57 billion reais, or $10.9 billion, in Brazil in 2026, about 50% more than it spent in 2025. According to the company, most of this investment will go toward expanding its logistics network and strengthening its e-commerce marketplace platform. As part of this plan, MercadoLibre, Inc. will open 14 new fulfillment centers, bringing the total in Brazil to 42. The company also plans to create around 10,000 new jobs, with a focus on logistics, financial services, and technology. MercadoLibre, Inc.’s financial unit, Mercado Pago, will also benefit from this investment. The goal is to increase credit for consumers and small businesses that operate within its ecosystem in Brazil.
Brazil continues to be the company’s largest market and a major driver of revenue. The investment is intended to support a stronger logistics network, faster delivery, and a broader fintech and credit offering. Earlier this month, MercadoLibre, Inc. also announced a $3.4 billion investment in Argentina, highlighting its ongoing expansion across Latin America.
According to a report released on the same day, Morgan Stanley reiterated a Buy rating on MercadoLibre, Inc., along with a price target of $2,600. The firm’s price target offers an additional 47% upside from the current levels.
MercadoLibre, Inc. runs online commerce platforms. It operates Mercado Pago and Mercado Libre Marketplace. The company also offers Mercado Fondo, Mercado Mercado Envios, and Mercado Credito. MercadoLibre was founded in 1999 and is based in Montevideo, Uruguay.
6. Alibaba Group Holding Limited (NYSE:BABA)
On April 2, Alibaba Group Holding Limited (NYSE:BABA) introduced its latest AI model, Qwen3.6-Plus, with a focus on stronger agentic capabilities and advanced coding performance. According to the company, the model delivers improved coding abilities and can handle more complex development tasks, while also offering better multimodal capabilities, including document understanding, decision-making, and visual analysis.
Qwen3.6-Plus is available through Alibaba Group Holding Limited Cloud’s Model Studio API and can be integrated with third-party coding tools. This makes it easier for developers to use in real-world applications. The release builds on feedback from the earlier Qwen3.5-Plus series launched in February, with improvements aimed at delivering a more reliable and stable platform. As highlighted by the company:
By directly addressing community feedback from the Qwen3.5-Plus deployment, this release offers a highly stable and reliable foundation for the developer ecosystem, delivering a truly transformative ‘vibe coding’ experience.
The launch reflects the company’s continued investment in AI as it faces growing competition in China from companies such as ByteDance, DeepSeek, and Baidu.
Earlier, on March 25, Alex Yao of J.P. Morgan reiterated a Buy rating and set a price target of $205 on Alibaba Group Holding Limited. The firm’s price target implies a further 61% upside from the current levels.
Alibaba Group Holding Limited operates as a technology infrastructure and marketing solutions provider. It operates both within the People’s Republic of China and internationally. The company was founded by Chung Tsai and Yun Ma in June 1999 and is headquartered in Causeway Bay, Hong Kong.
5. Global-E Online Ltd. (NASDAQ:GLBE)
On March 31, Bank of America Securities analyst Matt Bullock initiated coverage of Global-E Online Ltd. (NASDAQ:GLBE) with a Buy rating and a price target of $43. The firm’s price target implies an additional 37.9% upside from the current levels. The firm said the company is still in the early stages of capturing a large opportunity in the software market. BofA added that Global-E Online Ltd. is making steady progress toward becoming a leading platform in cross-border e-commerce. Over time, the company is expected to strengthen its position and potentially establish itself as a key industry standard by 2030.
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On the same day, UBS also updated its view on Global-E Online Ltd., reiterating a Buy rating while reducing its price target. UBS analyst Christopher Zhang lowered the firm’s price target on the stock from $52 to $50. The firm’s revised price target suggests a further 60% upside from the current levels. This upside is consistent with the median Wall Street analyst upside of about 53%, based on 14 analysts covering the stock. Even the lowest Wall Street price target of $42 implies 34% upside.
Global-E Online Ltd. operates as a cross-border e-commerce platform provider that supports direct-to-consumer transactions. The company operates in the United States, Israel, the United Kingdom, and internationally. Founded in 2013, Global-E Online is based in Petah Tikva, Israel.
4. Chewy, Inc. (NYSE:CHWY)
Morgan Stanley analyst Nathan Feather reduced the firm’s price target on Chewy, Inc. (NYSE:CHWY) from $50 to $49 while keeping an Overweight rating on March 30. The firm’s revised price target suggests a compelling 94% upside from the current levels. The firm emphasized that the company’s recent earnings, which came in much better than expected, suggest it may outperform its initial guidance, especially on EBITDA. Analysts believe the market is underestimating this potential, according to a research note shared with investors.
However, in contrast to Morgan Stanley, RBC Capital increased its price target on Chewy, Inc. while maintaining an Outperform rating on March 27. Analyst Steven Shemesh raised the firm’s price target on the stock from $43 to $47. The firm highlighted that the company’s fourth-quarter results met expectations and that its guidance exceeded forecasts. According to the analyst, management is successfully driving consistent market share gains and has addressed concerns that 2026 would be a reinvestment-focused year, supporting a positive outlook for the company.
Chewy, Inc. is involved in the e-commerce business across the United States. The company provides pet supplies and medications, pet food and treats, and other pet health products. It is based in Plantation, Florida, and was incorporated in 2010.
3. Sea Limited (NYSE:SE)
According to a report released on March 9, Phillip Securities analyst Helena Wang reiterated a Buy rating on Sea Limited (NYSE:SE) with a price target of $170. The firm’s price target suggests an additional 98% upside from the current levels.
Earlier, on March 6, TD Cowen also maintained a Hold rating on Sea Limited while cutting its price target. Analyst John Blackledge lowered the firm’s price target on the stock from $138 to $100. He pointed to the company’s fourth-quarter earnings miss, noting that total revenue exceeded consensus estimates but EBITDA fell short by 3%. The analyst also highlighted that the company’s outlook for flat or slightly improving EBITDA compared with 2025 is below market expectations. This influenced the firm’s cautious stance on the shares.
Sea Limited released its fourth-quarter results on March 3, beating both revenue and earnings estimates. Revenue for the quarter reached $6.85 billion, representing a 38.4% year-over-year growth. Earnings per share came in at $0.63, exceeding the estimates by $0.01.
Sea Limited is a consumer internet company operating in Latin America, Southeast Asia, the rest of Asia, and internationally. It operates in the Digital financial services, E-commerce, and Digital entertainment segments. The company is based in Singapore.
2. Mobileye Global Inc. (NASDAQ:MBLY)
Michael Filatov from Berenberg Bank started coverage of Mobileye Global Inc. (NASDAQ:MBLY) with a Buy rating and a price target of $9.30 on March 31. He described the company as a leading global provider of software and technology for camera-based advanced driver assistance systems (ADAS). The firm expects MBLY to capture more business in the high-volume L2 to L2+ ADAS segment, as automakers increasingly focus on scalability, cost efficiency, and performance.
Earlier, on March 23, Mobileye Global Inc. announced that a leading U.S. automaker will integrate its Driver Monitoring System into vehicles equipped with the EyeQ6L system-on-chip. Production of these vehicles is planned to begin in 2027. This program, expected to cover millions of vehicles across multiple models and model years, expands the capabilities of the company’s existing ADAS features.
Mobileye Global Inc.’s platform combines in-cabin sensing with exterior road perception on a single chip, allowing the system to monitor driver engagement more effectively. It evaluates not only whether the driver is alert but also where they are looking and whether their attention aligns with the driving environment.
Mobileye Global Inc. designs and deploys advanced driver assistance systems (ADAS) as well as autonomous driving technologies and solutions. The company operates through the Moovit and Mobileye segments. It provides end-to-end ADAS and autonomous driving solutions, Cloud-Enhanced ADAS, and Mobileye Surround ADAS.
1. Grupo Aeroméxico, S.A.B. de C.V. (NYSE:AERO)
On March 24, Barclays analyst Pablo Monsivais maintained an Overweight rating on Grupo Aeroméxico, S.A.B. de C.V. (NYSE:AERO) while cutting the firm’s price target on the stock from $32 to $25. The firm’s revised price target suggests an impressive 59% upside from the current levels. The price target adjustment was part of a broader update to Barclays’ views on the Latin American transportation sector. The firm made larger changes, specifically in airline stocks.
Barclays has adopted a more cautious stance on the sector due to limited visibility on jet fuel prices and elevated market volatility. Analyst Pablo Monsivais highlighted that uncertainty around fuel costs is a major factor driving this more conservative outlook. Despite this, the firm continues to see value in selected names like AERO.
In addition to Barclays, JPMorgan also cut its price target on Grupo Aeroméxico, S.A.B. de C.V. while maintaining an Overweight rating on March 12. Guilherme Mendes from JPMorgan slightly lowered the firm’s price target on the stock from $28.50 to $28, reflecting a compelling 78% upside from the current levels.
Grupo Aeroméxico, S.A.B. de C.V. operates as a public air carrier services provider for goods and passengers. The company provides cargo air carrier services, scheduled passenger air carrier services, and other services, as well as loyalty programs. It was incorporated in 1934 and is headquartered in Mexico City, Mexico.
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