In this article, we will take a look at the 9 Best Energy Stocks With Huge Upside Potential.
As November draws to a close, the S&P energy index has lagged behind the broader index, showing a modest rise of 1.57% in the final week of the month. The recent drop in global oil prices is a major contributing factor to this loss, as WTI crude oil futures remain close to a 1-month low of approximately $58 per barrel. The primary trigger of this is the potential of a resolution to the feud between Russia and Ukraine, which might result in the lifting of Western sanctions on Russian oil.
The International Energy Agency (IEA) is another key participant in determining the current market.The IEA’s revitalized Current Policies Scenario (CPS) within its World Energy Outlook 2025 included a reappraisal of long-term oil demand. To meet the projected demand in 2035, the CPS needs nearly an additional $100 billion per year in upstream capital expenditures, compared to the $570 billion estimated this year. Without it, the oil market may face a supply shortage.
However, the IEA’s Stated Policies Scenario indicates that current investment levels are adequate to meet demand through 2035. The difficulty for the sector is that annual upstream spending has not exceeded $600 billion since 2018-19, when it was about $640 billion. The overall long-term prospects for sustained high oil prices remain uncertain. The U.S. Energy Information Administration (EIA) expects crude oil prices to fall by the end of 2025, averaging $55 per barrel by 2026, as global oil output is likely to exceed demand.
Our Methodology
For this list, we chose energy stocks with an analyst upside potential of more than 20%. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds, as of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9. Targa Resources Corp. (NYSE:TRGP)
Analyst Upside: 22.33%
Number of Hedge Fund Holders: 50
Targa Resources Corp. (NYSE:TRGP) ranks among the best energy stocks with huge upside potential. On November 18, RBC Capital lifted its price target for Targa Resources Corp. (NYSE:TRGP) to $213 from $208, while maintaining an Outperform rating following the company’s third-quarter 2025 results. The firm observed that Targa Resources Corp. (NYSE:TRGP) displayed robust quarterly performance and expects the company to meet the upper end of its 2025 adjusted EBITDA guidance range, which RBC thinks could be modest.
Targa Resources Corp. (NYSE:TRGP) outperformed expectations with earnings per share of $2.13. However, the company had a revenue shortfall during the same period. Targa Resources also announced the pricing of its $1.75 billion public offering of senior notes in two parts. The offering contains $750 million of 4.350% Senior Notes due in 2029 as well as $1.0 billion of 5.400% Senior Notes due in 2036.
RBC Capital noted solid and rising volumes as support for Targa’s newly declared development projects, which are expected to offer strategic advantages for the company.
Targa Resources Corp. (NYSE:TRGP) is a leading midstream energy company with extensive infrastructure that connects North American natural gas and natural gas liquids (NGLs) to key domestic and international markets.
8. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Analyst Upside: 24.61%
Number of Hedge Fund Holders: 33
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) ranks among the best energy stocks with huge upside potential. On November 10, CFRA reaffirmed its Hold rating on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) but increased its price target from $13 to $14.50. The firm raised Petrobras’ earnings per share projections to BRL9.33 for the fiscal year 2025 and BRL9.03 for the fiscal year 2026.
Petrobras’s third-quarter performance, according to the firm, was “somewhat mixed,” with more capital expenditure leading to worse cash flows despite improved production. Petrobras (NYSE:PBR) reported adjusted recurring EBITDA of $11.9 billion, which was roughly 5% higher than the company-collated consensus. Additionally, the Brazilian oil giant revealed a $2.24 billion quarterly dividend, which was 7% higher than anticipated. The company’s performance was boosted by a 17% year-over-year improvement in upstream production, despite a 24% increase in capital expenditure to $5.5 billion over the same time period.
Additionally, CFRA voiced concerns about political meddling at the board and management levels, pointing to the possibility that President Lula would promote a focus on creating jobs rather than shareholder dividends, possibly pursuing projects outside the company’s area of interest or with fewer returns.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is involved in exploration, production, and distribution activities involving oil and gas.
7. Kodiak Gas Services, Inc. (NYSE:KGS)
Analyst Upside: 29.38%
Number of Hedge Fund Holders: 32
Kodiak Gas Services, Inc. (NYSE:KGS) ranks among the best energy stocks with huge upside potential. On November 18, RBC Capital maintained its Outperform rating while increasing its price target for Kodiak Gas Services, Inc. (NYSE:KGS) from $43 to $45. According to the firm, the price target hike comes after Kodiak’s “solid” third-quarter 2025 results, which were somewhat offset by a one-time cost associated with the company’s disposal of its holdings in Mexico.
Kodiak Gas Services, Inc. (NYSE:KGS) missed its earnings per share prediction for the third quarter, with earnings per share of $0.36 compared to an expected $0.42. However, the company exceeded revenue estimates, generating approximately $322 million versus the expected $234.76 million.
RBC stated that natural gas demand should continue to sustain Kodiak Gas Services, Inc. (NYSE:KGS)’s contracted development plans, with 2026 capital needs “effectively fully under contract” since large horsepower compression continues to be practically fully employed.
Kodiak Gas Services, Inc. (NYSE:KGS) runs contract compression infrastructure for its clients in the oil and gas industry in the U.S. The company operates through two segments, Compression Operations and Other Services.
6. Ovintiv Inc. (NYSE:OVV)
Analyst Upside: 29.92%
Number of Hedge Fund Holders: 52
Ovintiv Inc. (NYSE:OVV) ranks among the best energy stocks with huge upside potential. William Blair started tracking Ovintiv Inc. (NYSE:OVV) on November 26 with an Outperform rating and a $50 price target. The firm highlighted the company’s recent acquisition of NuVista as a positive driver, pointing out that it “accretively adds core liquids inventory with potential for incremental synergies.”
The acquisition will add around 930 net well placements, each equivalent to 10,000 feet, and approximately 140,000 net acres, with roughly 70% of that area remaining untapped. Ovintiv Inc. (NYSE:OVV) expects the additional assets to produce 100,000 barrels of oil equivalent per day on average in 2026, which includes 25,000 barrels of oil and condensate.
William Blair stated that the Montney addition strengthens Ovintiv’s strong Permian position, as both locations have significant infrastructure.
William Blair expects profitable operations at these two main ventures, along with a potential substantial asset sale, to deliver significant shareholder value through dividends and stock buybacks.
Ovintiv Inc. (NYSE:OVV) is a Denver-based energy company specializing in natural gas, oil, and natural gas liquids across the United States and Canada.
5. Cameco Corporation (NYSE:CCJ)
Analyst Upside: 32.98%
Number of Hedge Fund Holders: 79
Cameco Corporation (NYSE:CCJ) ranks among the best energy stocks with huge upside potential. UBS began coverage of Cameco Corporation (NYSE:CCJ) on November 10 with a Neutral rating and a C$140 price target, citing recent price gains in spite of favorable industry fundamentals. UBS anticipates a substantial increase in Cameco’s profitability this decade as the energy giant recontracts supplies at ever-higher spot prices and its Westinghouse unit secures contracts on new-build nuclear reactors.
Although the firm is “on the sidelines given the recent momentum and trading premium” since the stock is trading close to full value on a number of valuation metrics, it anticipates that spot uranium prices will rise in 2026, possibly due to an inventory restocking cycle.
This follows Cameco Corporation’s financial results for the third quarter of 2025, which highlighted a mixed performance. The company reported earnings per share of $0.07, which was much lower than the expected $0.23, culminating in a 69.57% negative surprise. Cameco’s revenue, however, topped forecasts, reaching $615 million contrary to the expected $568 million.
Cameco Corporation (NYSE:CCJ) provides uranium for the generation of electricity. It operates through three segments: Uranium, Fuel Services, and Westinghouse.
4. Kinetik Holdings Inc. (NYSE:KNTK)
Analyst Upside: 37.37%
Number of Hedge Fund Holders: 20
Kinetik Holdings Inc. (NYSE:KNTK) ranks among the best energy stocks with huge upside potential. On November 19, RBC Capital reduced its price target for Kinetik Holdings Inc. (NYSE:KNTK) to $46 from $52, while keeping an Outperform rating on the company’s shares. The cut comes after Kinetik’s third-quarter 2025 results, which came in shy of expectations according to RBC Capital.
Kinetik Holdings Inc. (NYSE:KNTK) management lowered its 2025 EBITDA projection from $1,030-1,090 million to $965-1,005 million in response to its weak third-quarter performance and ongoing difficulties expected in the fourth quarter. Additionally, the company effectively revoked its previous run-rate projection for the fourth quarter, which was an annualized $1.2 billion. The company’s underperformance was also exacerbated by a slight delay in the Kings Landing start-up.
Despite current difficulties, RBC believes that new Permian natural gas takeaway infrastructure should eventually lower curtailment activity and enhance Waha prices for Kinetik Holdings Inc. (NYSE:KNTK).
Kinetik Holdings Inc. (NYSE:KNTK) is a midstream energy company operating in the Delaware Basin. It provides comprehensive services for companies that produce natural gas, natural gas liquids (NGLs), crude oil, and water.
3. Diversified Energy Company (NASDAQ:DEC)
Analyst Upside: 39.17%
Number of Hedge Fund Holders: 24
Diversified Energy Company (NASDAQ:DEC) ranks among the best energy stocks with huge upside potential. On November 18, William Blair initiated coverage on Diversified Energy Company (NASDAQ:DEC), rating it Outperform. The firm underscored Diversified’s unique approach to drilling and completion, noting that the company purchases, operates, and improves existing long-life, low-decline oil and gas assets rather than drilling new ones.
William Blair noted that Diversified’s approach of maximizing the performance of older wells proved less heavy on capital compared to conventional upstream drilling and completion models. In addition, the firm had voiced anticipation that the company would announce another significant accretive acquisition.
In that regard, on November 28, Diversified Energy Company (NASDAQ:DEC) formally finalized its acquisition of Canvas Energy, acquiring a substantial collection of producing assets and Oklahoma land that instantly expands its reach. The transaction, which is funded by a new $400 million asset-backed securitization (ABS), represents a deliberate move that improves long-term optionality and productivity.
The acquired properties increase Diversified’s standalone output by around 13%, adding about 147 million cubic feet equivalent of natural gas per day to current net production.
Diversified Energy Company (NASDAQ:DEC) is an independent owner and operator of producing natural gas & oil wells primarily in the Appalachian Basin of the US.
2. Chord Energy Corporation (NASDAQ:CHRD)
Analyst Upside: 41.25%
Number of Hedge Fund Holders: 49
Chord Energy Corporation (NASDAQ:CHRD) ranks among the best energy stocks with huge upside potential. On November 21, William Blair analyst Neal Dingmann began coverage of Chord Energy Corporation (NASDAQ:CHRD) with an Outperform rating, pointing out that CHRD shares have lagged in comparison to the exploration and production sector as a whole, which is comparable to the trend seen regarding lower-quality peers in the industry.
William Blair claimed that a major contributing element to the stock’s downturn has been investor worries about future oil prices, especially in the Bakken region. However, the firm pointed out that investors might be ignoring Chord’s solid balance sheet position, significant free cash flow generation, and low breakeven costs.
Moreover, earlier this month, Chord Energy Corporation (NASDAQ:CHRD) released its third-quarter 2025 earnings, which exceeded analyst estimates. With earnings per share of $2.35, the company outperformed the forecast of $2.31. Meanwhile, Chord Energy’s revenue exceeded the projected $1.09 billion by reaching the $1.31 billion mark.
Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company that focuses on acquiring, developing, and producing crude oil, natural gas, and natural gas liquids in the Williston Basin.
1. Venture Global, Inc. (NYSE:VG)
Analyst Upside: 96.83%
Number of Hedge Fund Holders: 27
Venture Global, Inc. (NYSE:VG) ranks among the best energy stocks with huge upside potential. Goldman Sachs affirmed its Buy rating and $17.50 price target for Venture Global, Inc. (NYSE:VG) on November 10 in response to the company’s third-quarter 2025 earnings report. The company exceeded Goldman Sachs’ expectation of $1,462 million with its third-quarter adjusted EBITDA of $1,525 million.
With the backing of the Plaquemines plant ramp-up, Venture Global, Inc. (NYSE:VG) retained its robust volume predictions, aiming for 382-386 cargoes for 2025, at the upper end of its initial range of 367-389 cargoes.
Furthermore, Venture Global, Inc. (NYSE:VG) and the Spanish energy provider Naturgy announced a significant 20-year Sales and Purchase Agreement during the quarter. With deliveries scheduled to start in 2030, this deal calls for the supply of around one million tons of LNG annually. Since Venture Global’s first agreement with a Spanish company in 2018, this arrangement is considered Spain’s first long-term commitment for American LNG.
Venture Global, Inc. (NYSE:VG) is involved in the construction and development of liquefied natural gas production. The company’s projects include Calcasieu, Plaquemines, CP2, CP3, and Delta projects.
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