In this article, we will take a look at the 5 Most Promising Energy Stocks to Buy Now. For a deeper discussion and analysis, please refer to the 10 Most Promising Energy Stocks to Buy Now.
5. BP p.l.c. (NYSE:BP)
Upside Potential as of July 7: 34.50%
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
On July 3, JPMorgan cut its price recommendation on BP p.l.c. (NYSE:BP) from £600 to £550, while keeping a ‘Neutral’ rating on the shares. The revised target still indicates an upside of over 14% from the current price level.
BP p.l.c. (NYSE:BP) is set to announce its Q2 2026 results on August 5. The company expects its second-quarter upstream production to be lower compared to Q1, primarily due to the seasonal maintenance predominantly in the Gulf of America and the supply disruption in the Middle East. It also cautioned that the recent high volatility in oil and gas prices could impact PSA contracts. The British energy giant is targeting a capital expenditure budget in the range of $13-13.5 billion for the full-year 2026.
With an impressive annual yield of 5.17%, BP p.l.c. (NYSE:BP) was also recently placed in our list of the 12 Best NYSE Stocks to Buy for Dividends.
4. Halliburton Company (NYSE:HAL)
Upside Potential as of July 7: 36.72%
Halliburton Company (NYSE:HAL) is one of the largest providers of products and services to the energy industry in the world.
On July 2, UBS slightly upped its price estimate on Halliburton Company (NYSE:HAL) from $39 to $40, while reiterating a ‘Neutral’ rating on the shares. The target boost reflects an upside of over 21% from the current price level.
In another notable development, it was reported on July 6 that Halliburton has signed an agreement with the Iraqi government to develop the Bin Umar and Sindbad oil fields in Basra governorate in the country’s south.
The output at Bin Umar is expected to rise to 150,000 barrels of oil per day (bopd) over the next five years, with associated gas production targeted at 300 million standard cubic feet per day (MMscf/d). Similarly, the crude production at Sindbad is targeted to surge by 80,000 to 100,000 bopd over the same period, with associated gas production targeted at 240 to 260 MMscf/d.
3. Baker Hughes Company (NASDAQ:BKR)
Upside Potential as of July 7: 36.76%
Baker Hughes Company (NASDAQ:BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide.
On July 2, TD Cowen analyst Marc Bianchi raised the firm’s price objective on Baker Hughes Company (NASDAQ:BKR) from $75 to $77, while reaffirming a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 44% from the current share price.
TD Cowen believes that Baker Hughes’ core OFSE and IET businesses remain largely on track. While IET orders are projected to fall from the strong Q1 levels, the analyst firm still expects them to remain in line, or even above, the midpoint of the company’s annual guidance.
The energy technology firm’s IET orders surged by almost 54% YoY to $4.89 billion in the first quarter, supported by the rise in electricity demand from data centers, along with investments in LNG, gas infrastructure, and grid equipment. Baker Hughes remains confident in achieving at least the $14.5 billion midpoint of its order guidance for IET in FY 2026. Moreover, the company intends to continue this momentum with a target for IET orders to exceed $40 billion by 2028.
2. SLB N.V. (NYSE:SLB)
Upside Potential as of July 7: 37.37%
SLB N.V. (NYSE:SLB) engages in the provision of technology for the energy industry worldwide.
On July 1, Citi cut its price recommendation on SLB N.V. (NYSE:SLB) from $68 to $63, but maintained a ‘Buy’ rating on the shares. The lowered target still represents an upside of over 18% from the current levels.
Citi trimmed its estimates for SLB’s second quarter, saying that the ongoing weakness in the Middle East is expected to negatively impact the company’s EBITDA growth. The analyst firm believes that SLB is unlikely to see any significant upside unless the headwinds in the region begin to subside.
Back in January, SLB N.V. (NYSE:SLB) guided its FY 2026 revenue to be between $36.9 billion and $37.7 billion, but this outlook assumed oil prices to remain range-bound in the high 50s to low 60s. However, the recent US-Iran war pushed global crude prices to multi-year highs, providing a significant boost to operators like SLB. The company is also targeting to nearly double annual revenues in its digital business to as much as $2 billion by 2030, with margins expanding to a range of 38%-42% towards the end of the decade.
1. ConocoPhillips (NYSE:COP)
Upside Potential as of July 7: 40.15%
Topping our list of the Most Promising Energy Stocks is ConocoPhillips (NYSE:COP). It is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.
On June 29, Morgan Stanley lowered its price objective on ConocoPhillips (NYSE:COP) from $153 to $146, but reiterated an ‘Overweight’ rating on the shares. The revised target still implies an upside of almost 41% from the current levels.
The move comes after Morgan Stanley adjusted its estimates to reflect the latest energy prices. The WTI crude price has fallen by over 60% from its recent highs and is now hovering close to its pre-conflict levels following the US-Iran MoU on June 14.
In contrast, earlier on June 22, Roth Capital instead turned more bullish on ConocoPhillips (NYSE:COP) and upgraded the stock from ‘Neutral’ to ‘Buy’, while also raising its price target on the shares by $6 (read more details here).
ConocoPhillips is expected to announce the financial and operating results for its second quarter on August 6. The company is targeting Q2 production of 2.2 million barrels of oil equivalent per day at the midpoint.
While we acknowledge the potential of COP 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 COP and that has 100x upside potential, check out our report about the cheapest AI stock.
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