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 (NYSE:KWR) from $160 to $170 while maintaining a Buy rating.
In contrast to Deutsche Bank, RBC Capital cut its price target on Quaker Chemical Corporation (NYSE:KWR) 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 (NYSE:KWR) 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. (NYSE:ALK). 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. (NYSE:ALK) 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. (NYSE:QXO) 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. (NYSE:QXO) 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. (NYSE:QXO) 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. (NYSE:QXO) 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. (NASDAQ:MELI) 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 (NASDAQ:MELI) 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. (NASDAQ:MELI) 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. (NASDAQ:MELI), along with a price target of $2,600. The firm’s price target offers an additional 47% upside from the current levels.
MercadoLibre, Inc. (NASDAQ:MELI) 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 (NYSE:BABA) 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 (NYSE:BABA). The firm’s price target implies a further 61% upside from the current levels.
Alibaba Group Holding Limited (NYSE:BABA) 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.
While we acknowledge the potential of BABA to grow, 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 BABA and that has 100x upside potential, check out our report about the cheapest AI stock.
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