In this article, we are going to discuss the top 15 energy companies with the highest upside potential.
After posting notable gains in the first three months of 2025, the energy sector witnessed significant declines in April, primarily due to the ongoing global trade war sparked by President Trump’s tariffs and the prospects of an economic slowdown. The overall energy sector has now slid by around 3.8% since the beginning of the year, against a decline of about 5.8% by the wider market. Unsurprisingly, the downturn is led by the oil and gas sector, which has fallen by over 15% YTD.
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The primary reason behind this fall is the declining global price of crude oil, caused by the continued uncertainty surrounding global trade, demand fears, and the recent decision by OPEC+ to increase supply. The West Texas Intermediate crude price is currently hovering at a multi-year low level of just under $62, down by over 25% YoY. To make matters worse, the International Energy Agency recently cut its 2025 oil demand growth forecast by 300,000 barrels per day compared to last month, warning the world to ‘buckle up’ amid the escalating trade tensions.
That said, there are sectors in the energy industry that are still significantly bullish, with liquified natural gas being a prime example. The United States of America is already the largest LNG exporter in the world, with exports growing consistently over the last decade. Still, the industry continues to boom after it received significant support from the Trump administration, which has made boosting America’s fossil fuel sector its primary agenda. According to Wood Mackenzie, 15.5 million tons per annum (MTPA) of long-term LNG offtake contracts were signed in the first quarter of 2025, following a record 81 MTPA last year. These numbers are expected to spike in the coming months after more and more countries are looking to export American LNG to narrow their trade gap with the US, following a tariff threat by the White House.
Another important growth driver for the energy sector is the ongoing AI boom and its accompanying power-hungry data centers. According to a study by the American Clean Power Association, electricity demand in the US is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification. A primary candidate to satisfy this huge demand is natural gas, which is clean, reliable, and abundant. According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade. That said, natural gas is not as cheap as it was a year ago, as prices have surged by around 36.6% over the last 52 weeks.
Another important candidate is nuclear energy, which has emerged as a hot topic these days, especially after several tech giants met on the sidelines of the CERAWeek conference in Houston and signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050. A number of these companies have already signed contracts with nuclear energy providers to power their data centers, with Jeff Bezos’ online retail giant being a primary example.
With that said, here are the Best Energy Stocks to Buy According to Analysts.
Methodology:
To collect data for this article, we examined companies operating in the energy sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of April 28, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Energy Companies with the Highest Upside Potential.
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15. Constellation Energy Corporation (NASDAQ:CEG)
Upside Potential as of April 28: 28.8%
Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US with approximately 34.2 GW of generating capacity, enough to power 16 million homes and businesses.
Constellation Energy Corporation (NASDAQ:CEG) reported better-than-expected results in Q4 2024. Its adjusted EPS of $2.44 topped expectations by $0.3, benefiting from lower expenses and rising demand for power. The company’s revenue of $5.38 billion also beat estimates by $633.73 million, despite being down by 7.14% YoY. Moreover, Constellation Energy’s operating margins have increased from 10% to the high teens, with an impressive ROE of 30%, significantly outperforming traditional utilities that struggle to exceed 10% ROE. The company also repurchased $1 billion of its common stock in FY 2024, in addition to increasing its annual dividend by 25%.
In a significant move to expand its portfolio, Constellation Energy Corporation (NASDAQ:CEG) announced in January that it has agreed to acquire the natural gas and geothermal company Calpine Corp for $26.6 billion, marking one of the biggest acquisitions in the US power industry. CEG’s upside potential was also highlighted by Citigroup earlier this month, when they upgraded their outlook for the company from Neutral to Buy with a price target of $232.
With 17 billionaire holders in the Insider Monkey database at the end of Q4 2024, Constellation Energy Corporation (NASDAQ:CEG) is included among the 10 Best Nuclear Energy Stocks to Buy According to Billionaires.
14. Energy Transfer LP (NYSE:ET)
Upside Potential as of April 28: 33.07%
Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America, with approximately 130,000 miles of pipelines and associated energy infrastructure in 44 states.
Energy Transfer LP (NYSE:ET) had a tough Q4 2024 as its EPS of $0.29 fell below estimates of $0.35. The company’s revenue also declined by 6.6% YoY to $5.27 billion, missing expectations by $914 million. ET’s performance during the quarter was impacted by lower volumes in its fuel distribution segment, partially offset by contributions from recently acquired pipeline and terminal assets. The company’s adjusted distributable cash flow attributable to partners came in at $8.4 billion for FY 2024, which was up 10% YoY and also a partnership record. To send a positive signal to its investors, the company recently raised its quarterly dividend by 0.8% to $0.3275 per share.
To make sure it doesn’t miss out on the AI boom, Energy Transfer LP (NYSE:ET) recently secured a groundbreaking agreement with CloudBurst Data Centers, marking its first publicized partnership in the data center space. With interest from over 70 prospective data centers across 12 states, ET is set to benefit significantly from the increasing demand for reliable energy sources.
13. Cameco Corporation (NYSE:CCJ)
Upside Potential as of April 28: 34.55%
Cameco Corporation (NYSE:CCJ) is one of the largest global providers of uranium fuel with a licensed capacity to produce more than 53 million pounds of uranium concentrates annually, backed by more than 464 million pounds of proven and probable mineral reserves.
Cameco Corporation (NYSE:CCJ) reported strong results for Q4 2024 with its revenue beating estimates and growing by 33% YoY to $834.83 million. The uranium producer’s full-year revenue for 2024 also increased by 21%, driven primarily by increased prices. Moreover, the company’s adjusted EPS of $0.25 also topped expectations by $0.03. Cameco’s average realized price rose 17% to $58.34 per pound while its sales volumes grew 5% in 2024. As a result, the company raised its annual dividend from $0.12 per share in 2023 to $0.16 per share in 2024.
Cameco Corporation (NYSE:CCJ) delivered 33.6 million pounds of uranium in 2024 and expects 36 million pounds in 2025. The company’s long-term contracts stood at nearly 220 million pounds at the end of last year, and it already has a large pipeline under discussion.
Highlighting the company’s strong upside potential, Bernstein initiated coverage of Cameco Corporation (NYSE:CCJ) earlier this month, with an Outperform rating and a price target of $52.
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