The energy sector is made up of companies focused on the exploration, production and commercialization of oil, gas and renewable resources around the world. Popular stocks in the energy sector include upstream companies primarily engaged in the exploration of oil or gas reserves. Well-known companies are Devon Energy Corp. (DVN) and Chesapeake Energy Corp. (CHK). Downstream companies include HollyFrontier Corp. (HFC), which refines and processes oil and gas products for delivery to consumers.
The oil price war in early 2020 and the COVID-19 pandemic pushed oil prices to record lows in April 2020 and dramatically pressured energy stocks, as represented by the Energy Select Sector SPDR ETF (XLE) . The oil market may be poised for further volatility, as OPEC Plus reached an agreement in mid-July to increase production starting next month. XLE has risen from its lowest point last year and is now slightly underperforming the overall market. XLE has provided a 37.6% total return over the past 12 months, just below the Russell 1000’s total return of 38.1%. These market performance numbers and all statistics in the tables below are as of July 16, 2021.
Here are the top 3 energy stocks with the best value, the fastest growth, and the most momentum.
These are the energy stocks with the lowest price-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Best value energy stocks|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|Antero Midstream Corp. (AM)||9.68||4.6||13.3|
|Valvoline Inc. (VVV)||30.41||5.5||16.7|
|ONEOK Inc. (OKE)||53.31||23.8||20.6|
- Antero Midstream Corp .: Antero Midstream owns, develops and operates midstream energy assets. The company offers collection pipeline security and related services throughout North America. On April 28, the company reported $ 83 million in net income from increased revenue for the first quarter of 2021 compared to a loss from the prior year. Cost reductions were a key factor in improving results.
- Valvoline Inc .: Valvoline is a manufacturer and distributor of automotive lubricants and chemicals. The company produces motor oil, antifreeze, brake fluid, fatty products, and more. On July 19, the company announced a quarterly dividend of $ 0.125 per common share, payable on September 15 to shareholders of record as of August 30, 2021.
- ONEOK Inc .: ONEOK is a diversified energy company with operations in the US It is a midstream energy company focused on the natural gas space.
These are the top energy stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly year-over-year percentage revenue growth and their most recent quarterly earnings per share (EPS) growth. . Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest growing energy stocks|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Cabot Oil & Gas Corp. (COG)||16.16||6.5||138.5||19.0|
|Valvoline Inc. (VVV)||30.41||5.5||12.1||21.3|
|Cheniere Energy Inc. (LNG)||83.56||21.2||7.7||14.1|
- Cabot Oil & Gas Corp .: Cabot Oil & Gas is an oil and gas company that develops and explores properties in North America. The company has interests in Texas, Louisiana, the Rocky Mountains and the Appalachian and Anadarko basins, as well as Canada. The company announced on May 24 that it would be merging with Cimarex Energy Co. (XEC) in a joint stock merger. The business value of the combined company is approximately $ 17 billion. The transaction is expected to close in the last quarter of 2021 and will result in a company operating under a new name.
- Valvoline Inc .: See above for company description.
- Cheniere Energy Inc .: Cheniere Energy owns and operates liquefied natural gas pipelines and terminals in Louisiana and Texas.
These are the energy stocks that had the highest total returns in the last 12 months.
|More dynamic energy stocks|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|Cimarex Energy Co. (XEC)||66.08||6.8||159.9|
|Devon Energy Corp. (DVN)||25.78||17.5||157.7|
|Texas Pacific Land Corp. (TPL)||1415.70||11.0||147.6|
|Russell 1000||N / A||N / A||38.1|
|Energy Select Sector SPDR ETF (XLE)||N / A||N / A||37.6|
- Cimarex Energy Co.: Cimarex is a crude oil and natural gas exploration and development company. It is dedicated to drilling, completing and operating wells in states such as Oklahoma, Texas and New Mexico. As indicated above, Cimarex will be combined with Cabot Oil & Gas in a share merger.
- Devon Energy Corp .: Devon Energy is an energy company involved in the exploration, development and production of oil and gas. The company also transports oil, gas and related products and processes natural gas. It has marketing and midstream operations primarily in North America.
- Texas Pacific Land Corp .: Texas Pacific Land Corp. is a land trust that owns approximately 900,000 acres in West Texas. The company is not an oil and gas company, but it does generate income from fees paid by energy companies for the use of land and from royalties.
The comments, opinions and analysis expressed in this document are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt an investment strategy. While we believe that the information provided in this document is reliable, we do not guarantee its accuracy or completeness. The opinions and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analysis included in our content are presented on the date of publication and may change without notice. The material is not intended to be a complete analysis of all material facts relating to any country, region, market, industry, investment, or strategy.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow to produce accurate and unbiased content at our