5 Best Large Cap Energy Stocks to Buy Now

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1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 98

Topping our list of the Best Large-Cap Energy Stocks is Exxon Mobil Corporation (NYSE:XOM). It is one of the largest integrated fuels, lubricants, and chemical companies in the world.

Exxon Mobil Corporation (NYSE:XOM) received a lift on March 12 when Piper Sandler raised its price target on the stock from $145 to $186, while keeping an ‘Overweight’ rating on the shares. The revised target indicates an upside potential of around 19% from the current share price.

Piper Sandler upped its estimates due to a $5 per barrel increase in its mid-cycle WTI price forecast, driven by the supply disruptions due to the US-Iran war. The war has led to Tehran effectively closing down the Strait of Hormuz, which handles around 20% of the global crude oil and LNG supply. The outages have sent crude oil prices soaring to multi-year highs, with WTI crude oil futures trading at just below the $100 per barrel mark as of the writing of this piece.

While the duration of these disruptions remains uncertain, Piper expects them to leave a lasting impact. As a result, the firm’s commodity macro team is forecasting that the 2026 crude balances will tighten by about 2 Mb/d compared to prior expectations. The analyst firm expects the tight supply, paired with the high prices, to drive an uptick in future investments to increase production.

While we acknowledge the potential of XOM 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 XOM and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 14 Best Oil and Gas Dividend Stocks to Buy Right Now

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