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.
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