15 Best Energy Stocks to Invest In Today

In this article, we discuss the 15 best energy stocks to invest in today. You can skip our detailed analysis of the energy stocks and the industry’s future outlook and go directly to the 5 Best Energy Stocks to Invest In Today

Due to oil prices reaching their multiyear high and the growing trends of clean energy to tackle climate change, energy stocks remain on investors’ radar.

In July, the oil prices reached their highest in six years after the talks between the Organization of Petroleum Exporting Countries, or OPEC, and its allies were put off for an unspecified time, amid tensions between Saudi Arabia and UAE. According to Goldman Sachs, the rally in oil prices would likely continue and could reach $80 per barrel by the end of 2022.

The Energy Select Sector SPDR Fund, which presents the energy sector of the S&P 500 index and lists some of the most notable energy companies such as Exxon Mobil Corporation (NYSE: XOM), Marathon Petroleum Corporation (NYSE: MPC), Chevron Corporation (NYSE: CVX), and ConocoPhillips (NYSE: COP), rose 44.26% in the past year and 32.8% year to date. Moreover, according to the Wall Street Journal, in May, the energy sector led the S&P 500’s 11 sectors, gaining 10%.

As mentioned before, the rising awareness of clean energy solutions is what gives energy stocks the renewed impetus. The investments in renewable energy stood at $500 billion globally. The figure is compared with $288.9 billion in 2018. China accounted for $134.8 billion of the gross investment. Additionally, Bloomberg reported that over half the new clean energy capacity was built in China in 2020. The expected growth of energy stocks also boosted Canada’s main stock index in August as energy stocks climbed 2.1%, Reuters reported. Companies like NG Energy International Corp. (TSX: GASX.V) aim to provide a clean solution to the growing energy needs in light of the country’s investment of over $960 million in renewable energy projects.

In June, a financial services company, RBC Capital, published its ‘Global Energy Best Ideas List’, comprising of energy stocks with a strong growth profile, supporting green initiatives, and a solid future outlook. The list includes NextEra Energy, Inc. (NYSE: NEE), ConocoPhillips (NYSE: COP), and Cheniere Energy, Inc. (NYSE: LNG). The bank keeps an ‘Outperform’ rating on all three stocks.

Our Methodology: 

With this context, let’s analyze our list of the 15 best energy stocks to invest in today. The stocks listed below include energy companies as well as those specializing in green energy solutions. We took into account hedge fund sentiments, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

15 Best Energy Stocks to Invest In Today

Photo by Jason Blackeye on Unsplash

 

Why pay attention to hedge fund sentiment while choosing stocks?

Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Best Energy Stocks to Invest In Today

15. National Energy Services Reunited Corp. (NASDAQ: NESR)

Number of Hedge Fund Holders: 11

National Energy Services Reunited Corp. (NASDAQ: NESR) is an oilfield service provider in the Middle East and North Africa (MENA) and Asia Pacific regions. Along with this, the company also provides services such as cementing, filtrations, fracturing, and completions. National Energy Services Reunited Corp. (NASDAQ: NESR) has operations in over 16 countries. It ranks fifteenth on our list of the best energy stocks to invest in today.

In June, National Energy Services Reunited Corp. (NASDAQ: NESR) initiated multiple contracts worth $150 million with major international oil companies in the MENA region. The projects will be executed within the next three years. In Q2 2021, National Energy Services Reunited Corp. (NASDAQ: NESR) posted revenue of $234.9 million, presenting a 15.6% year-over-year growth. In June, National Bank Financial lifted its price target on National Energy Services Reunited Corp. (NASDAQ: NESR) to $17.50 from $14, with an ‘Overweight’ rating on the shares. Since the beginning of the year, National Energy Services Reunited Corp. (NASDAQ: NESR) has delivered a 16.9% return to shareholders, while the stock gained 68.6% in the past year.

As of Q2 2021, 11 hedge funds tracked by Insider Monkey have positions in National Energy Services Reunited Corp. (NASDAQ: NESR), valued at $66.4 million.

Like Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), National Energy Services Reunited Corp. (NASDAQ: NESR) is one of the notable energy stocks gaining investors’ attention in 2021.

14. Talos Energy Inc. (NYSE: TALO)

Number of Hedge Fund Holders: 13

Talos Energy Inc. (NYSE: TALO) stands fourteenth on our list of the best energy stocks to invest in today. It is an offshore energy company that engages in the exploration, development, and production of natural gas and oil. The company has operations in the United States Gulf of Mexico and offshore Mexico. Talos Energy Inc. (NYSE: TALO) utilizes innovative resources and seismic imaging to discover new resources.

Recently, Talos Energy Inc. (NYSE: TALO) won a contract for a carbon capture and storage site located near Beaumont and Port Arthur, Texas. The project site has a total land area of over 40k acres and the company expects to seclude 225M-275M metric tons of carbon dioxide from industrial sources in the area. In Q2 2021, Talos Energy Inc. (NYSE: TALO) reported revenue of $303.8 million, showcasing a 241.8% year-over-year growth. In August, KeyBanc upgraded Talos Energy Inc. (NYSE: TALO) to ‘Overweight’ with a $15 price target. The firm’s analyst, Leo Mariani noted that company could benefit from the deals with CO2 emitters. Talos Energy Inc. (NYSE: TALO) gained 51.3% year to date and 99.2% in the past year.

As of Q2 2021, 13 hedge funds tracked by Insider Monkey have positions in Talos Energy Inc. (NYSE: TALO), up from 10 in the previous quarter. These stakes are valued at $66.4 million.

In addition to Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), investors and analysts are also paying attention to Talos Energy Inc. (NYSE: TALO) amid the company’s long-term growth potential.

13. PDC Energy, Inc. (NASDAQ: PDCE)

Number of Hedge Fund Holders: 23

PDC Energy, Inc. (NASDAQ: PDCE) is an American exploration and production company focused on the development of natural resources. The company aims to maintain a strong balance sheet while producing safe and environmentally responsible energy. It ranks thirteenth on our list of the best energy stocks to invest in today.

In Q2 2021, PDC Energy, Inc. (NASDAQ: PDCE) posted an EPS of $1.66, beating the consensus by $0.42. The consolidated revenue for the quarter stood at $228.8 million, up 320.6% significantly from the prior-year quarter. For FY221, the company expects the production of 64,000 to 66,000 barrels per day. In July, Truist lifted its price target on PDC Energy, Inc. (NASDAQ: PDCE) to $69, with a ‘Buy’ rating on the shares. Since the beginning of the year, PDC Energy, Inc. (NASDAQ: PDCE) has delivered a 107.3% return to shareholders, while its 12-month returns are up by 198.5%.

As of Q2 2021, 23 hedge funds tracked by Insider Monkey have positions in PDC Energy, Inc. (NASDAQ: PDCE), worth $248 million. Harris Associates is the company’s largest shareholder, with over 2.5 million shares.

Like Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), PDC Energy, Inc. (NASDAQ: PDCE) is one of the notable energy stocks gaining investors’ attention in 2021.

12. Targa Resources Corp. (NYSE: TRGP)

Number of Hedge Fund Holders: 26

Targa Resources Corp. (NYSE: TRGP) is an energy company that specializes in gathering, compressing, processing, transporting, and selling natural gas and natural gas liquids. It is a Fortune 500 company with headquarters in Texas, U.S.  In June, Targa Resources Corp. (NYSE: TRGP) joined S&P Midcap 400 index.

In August, Credit Suisse noted the company’s second consecutive uplifting of EBITDA guidance after a solid performance in the first half of 2021. On July 15, Targa Resources Corp. (NYSE: TRGP) announced a quarterly dividend of $0.10 per share, in-line with the previous. Credit Suisse lifted its price target on Targa Resources Corp. (NYSE: TRGP) to $52, while keeping its ‘Outperform’ rating on the shares. Since the beginning of the year, Targa Resources Corp. (NYSE: TRGP) has delivered a 72.2% return, while its 12-month returns are up by 191.4%.

Zimmer Partners is the company’s leading shareholder, with shares worth $143.1 million. As of Q2 2021, 26 hedge funds tracked by Insider Monkey have positions in Targa Resources Corp. (NYSE: TRGP), up from 24 in the previous quarter. The total value of these stakes is $387.9 million.

In addition to Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), investors and analysts are also paying attention to Targa Resources Corp. (NYSE: TRGP) amid the company’s long-term growth potential.

11. ONEOK, Inc. (NYSE: OKE)

Number of Hedge Fund Holders: 26

ONEOK, Inc. (NYSE: OKE) is an American midstream energy company and owns one of the largest natural gas liquids (NGL) systems in the country. The company’s operations include gathering, processing, transporting, and marketing natural gas. It ranks eleventh on our list of the best energy stocks to invest in today.

According to Morgan Stanley, ONEOK, Inc. (NYSE: OKE) is a viable option for investors looking for energy beta in the midstream as further oil and NGL prices are expected to improve. In Q2 2021, ONEOK, Inc. (NYSE: OKE) reported a net income of $342.1 million, up from $134.3 million during the same period last year. In FY21, the company expects net income to fall between $1.2 billion to $1.5 billion. In August, Morgan Stanley boosted its price target on ONEOK, Inc. (NYSE: OKE) to $59, with an ‘Equal Weight’ rating on the shares. On July 21, the company’s board announced a quarterly dividend of $0.935 per share. ONEOK, Inc. (NYSE: OKE) has soared by 103.3% in the past year and 41.7% year-to-date.

As of Q2 2021, 26 hedge funds tracked by Insider Monkey have positions in ONEOK, Inc. (NYSE: OKE), up from 20 in the previous quarter. The stakes are valued at $178.7 million.

Like Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), ONEOK, Inc. (NYSE: OKE) is one of the notable energy stocks gaining investors’ attention in 2021.

10. NRG Energy, Inc. (NYSE: NRG)

Number of Hedge Fund Holders: 33

NRG Energy, Inc. (NYSE: NRG) is an American energy company that specializes in integrated power and stands tenth on our list of the best energy stocks to invest in today. The company generates electricity and provides natural gas and energy solutions to consumers.

In June, Seaport Global lifted its price target on NRG Energy, Inc. (NYSE: NRG) to $47, with the firm maintaining its ‘Buy’ rating on the shares. The firm’s analyst, Angie Storozynski, noted the company’s exceptional transition from an independent power company to a consumer company providing several services. In Q2 2021, NRG Energy, Inc. (NYSE: NRG) posted a GAAP EPS of $$4.40, beating the estimates by $3.52. The consolidated revenue of $5.24 billion also presented a 133.9% year-over-year growth. On July 20, the company’s board announced a quarterly dividend of $0.325 per share. NRG Energy, Inc. (NYSE: NRG) gained 40.7% in the past year and 23.9% year to date.

As of Q2 2021, 33 hedge funds tracked by Insider Monkey have positions in NRG Energy, Inc. (NYSE: NRG), worth roughly $2 billion.

9. Cimarex Energy Co. (NYSE: XEC)

Number of Hedge Fund Holders: 36

Cimarex Energy Co. (NYSE: XEC) is an American energy company engaged in the exploration of hydrocarbon, especially shale oil and gas drilling. The company has operations in Texas, Oklahoma, and New Mexico. The major activity of Cimarex Energy Co. (NYSE: XEC) is carried out in Permian Basin and the Anadarko Basin in Western Oklahoma.

In June, Cimarex Energy Co. (NYSE: XEC) entered into a definitive agreement with Cabot Oil & Gas Corporation, combining in an all-stock merger of equals. The agreement aims to create a diversified energy leader to enhance free cash flow generation and returns for investors. In Q2 2021, Cimarex Energy Co. (NYSE: XEC) posted an EPS of $2.09, beating the estimates by $0.22. The consolidated revenue of $712.3 million also presented a 185.7% year-over-year growth. In August, Mizuho upgraded Cimarex Energy Co. (NYSE: XEC) to ‘Buy’ with a $95 price target. The firm’s analyst expects the combined entity to trade at a good value. Since the beginning of the year, Cimarex Energy Co. (NYSE: XEC) delivered a 84.2% return, while its 12-month shares are up by 181.8%.

As of Q2 2021, 36 hedge funds tracked by Insider Monkey have positions in Cimarex Energy Co. (NYSE: XEC), worth over $1.1 billion.

Like Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), Cimarex Energy Co. (NYSE: XEC) is one of the notable energy stocks gaining investors’ attention in 2021.

8. Enphase Energy, Inc. (NASDAQ: ENPH)

Number of Hedge Fund Holders: 44

Enphase Energy, Inc. (NASDAQ: ENPH) is an American energy technology company that provides solutions related to home energy using solar power. The company’s microinverter technology turns sunlight into a safe and reliable source of energy. Enphase Energy, Inc. (NASDAQ: ENPH) has installed over 36 million microinverters in more than 1.5 million homes across 130 countries. It ranks eighth on our list of the best energy stocks to invest in today.

In Q2 2021, Enphase Energy, Inc. (NASDAQ: ENPH) posted an EPS of $0.53, beating the consensus by $0.11. The company reported revenue of $316 million, up 151.8% from the prior-year quarter. In August, Wolfe Research initiated its coverage on Enphase Energy, Inc. (NASDAQ: ENPH) with an ‘Outperform’ rating due to the company’s differentiated microinverter product that provides broader home management solutions. Enphase Energy, Inc. (NASDAQ: ENPH) gained 160.18% in the past year and 28.1% in the past 6 months.

As of Q2 2021, 44 hedge funds tracked by Insider Monkey have positions in Enphase Energy, Inc. (NASDAQ: ENPH), worth $724.3 million.

In addition to Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), and Devon Energy Corporation (NYSE: DVN), investors and analysts are also paying attention to Enphase Energy, Inc. (NASDAQ: ENPH) amid the company’s long-term growth potential.

7. Marathon Petroleum Corporation (NYSE: MPC)

Number of Hedge Fund Holders: 48

Marathon Petroleum Corporation (NYSE: MPC) is an American petroleum refining company with the largest refining system in the country. The company’s operations also include crude oil and light product transportation and logistics.

Barclays’ analyst Theresa Chen recently noted the company’s repurchasing capability as it plans to repurchase a quarter of its market cap by 2022. In Q2 2021, Marathon Petroleum Corporation (NYSE: MPC) posted an EPS of $0.67, beating the market consensus by $0.29. The consolidated revenue stood at $29.8 billion, presenting a 142.5% year-over-year growth. On July 28, Marathon Petroleum Corporation (NYSE: MPC) announced a quarterly dividend of $0.58 per share. Recently, Citigroup upgraded Marathon Petroleum Corporation (NYSE: MPC) to ‘Buy’, with a $67 price target.

Paul Singer’s Elliot Management is the company’s largest shareholder with 10.5 million shares, worth $638.6 million. As of Q2 2021, 48 hedge funds tracked by Insider Monkey have positions in Marathon Petroleum Corporation (NYSE: MPC), worth over $2.6 billion. The number is up from 46 hedge funds in the previous quarter.

Like Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), Marathon Petroleum Corporation (NYSE: MPC) is one of the notable energy stocks gaining investors’ attention in 2021.

6. Cheniere Energy, Inc. (NYSE: LNG)

Number of Hedge Fund Holders: 49

Cheniere Energy, Inc. (NYSE: LNG) is an international company and is a leading producer of liquefied natural gas or LNG. In 2016, it became the first U.S. company to export LNG and currently delivers to 36 countries and regions worldwide. Cheniere Energy, Inc. (NYSE: LNG) ranks sixth on our list of the best energy stocks to invest in today.

In early August, Cheniere Energy, Inc. (NYSE: LNG) announced the near completion of the sixth train at its Sabine Pass LNG export plant in Louisiana, which will be available for commercial service in the first half of 2022. In Q2 2021, Cheniere Energy, Inc. (NYSE: LNG) posted revenue of $3.02 billion, up 25.8% from the prior-year quarter. In June, Citigroup lifted its price target on Cheniere Energy, Inc. (NYSE: LNG) to $115, while keeping a ‘Buy’ rating on the shares. The stock has soared 80.3% in the past year and 52.3% year to date.

In Q2 2021, we see that hedge funds are turning bullish on Cheniere Energy, Inc. (NYSE: LNG), as 49 hedge funds have positions in the company, compared with 40 in the previous quarter. The total value of these stakes is over $2.9 billion.

In addition to Exxon Mobil Corporation (NYSE: XOM), NextEra Energy, Inc. (NYSE: NEE), Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Devon Energy Corporation (NYSE: DVN), and Enphase Energy, Inc. (NASDAQ: ENPH), investors and analysts are also paying attention to Cheniere Energy, Inc. (NYSE: LNG) amid the company’s long-term growth potential.

 

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Disclosure. None. 15 Best Energy Stocks to Invest In Today is originally published on Insider Monkey.