Stock themes

Best oil stocks

Oil and gas stocks cover everything from the companies that find and pump the oil to the refiners that turn it into fuel and the tanker owners that move it. They share one thing: their earnings are set by a commodity price they do not control. That makes the sector cyclical, generous with dividends in good years, and painful in bad ones. Below, our model ranks every US-listed oil and gas stock by score and momentum.

31
Stocks
79
Average momentum
19
Rated strong
Stock Momentum Score To target
Petroleo Brasileiro Petrobras SA ADRStrong 90 279 +6%
Par Pacific Holdings, IncStrong 95 273 +1%
HF Sinclair CorporationStrong 98 271 -14%
Nordic American Tankers LimitedStrong 95 263 -9%
ConocoPhillipsStrong 92 250 +7%
Marathon Petroleum CorporationStrong 98 249 -16%
EOG Resources, IncStrong 80 248 +9%
Valero Energy CorporationStrong 98 246 -15%
Occidental Petroleum CorporationStrong 78 245 +10%
Phillips 66Strong 98 245 -11%
Energy Transfer LPStrong 88 240 +14%
Ecopetrol S.AStrong 93 237 -21%
Chevron CorporationStrong 89 236 +4%
Devon Energy CorporationStrong 77 232 +22%
BP p.l.cStrong 79 222 +7%
ONEOK, IncStrong 85 221 +2%
Cheniere Energy, IncStrong 79 215 +11%
Kinder Morgan, IncStrong 65 212 +12%
Diamondback Energy, IncStrong 75 210 +15%
EQT CorporationAverage 48 209 +21%
Exxon Mobil CorporationAverage 77 208 +6%
CVR Energy, IncAverage 97 207 -31%
Baker Hughes CompanyAverage 74 201 +12%
Targa Resources CorpAverage 88 201 +6%
Forum Energy Technologies, IncAverage 97 193 +12%
The Williams Companies, IncAverage 73 190 +13%
Archrock, IncAverage 40 187 +27%
Schlumberger LimitedAverage 87 178 +8%
Comstock Resources, IncAverage 17 162 +6%
Tsakos Energy Navigation LimitedAverage 72 159 no target
Borr Drilling LimitedWeak 29 88 +11%

Upstream, downstream and shipping

Upstream companies such as EOG Resources and ConocoPhillips find and produce oil; their profit follows the oil price closely. Downstream refiners like Marathon Petroleum, HF Sinclair and Par Pacific earn on the margin between crude and finished fuel — which can widen exactly when the oil price is falling. Integrated groups like Petrobras do both. And tanker owners such as Nordic American Tankers earn on freight rates, not on the oil price at all.

What moves oil and gas stocks?

The oil price — but not for everyone. A producer wins when crude rises. A refiner can win when it falls, because its input gets cheaper. Knowing which part of the chain a company sits in matters more here than in most sectors.

Supply decisions. Production quotas and spare capacity move the price more reliably than demand does over short horizons.

Capital discipline. After years of overspending, many producers now return cash instead of drilling. That changes the shape of the investment: more dividend, less growth.

The long-term question. Demand does not have to disappear for valuations to fall — it is enough that the market expects it to.

Questions and answers

Do oil stocks always rise when the oil price rises?

No. Producers usually do, because their revenue is the oil price. Refiners can move the other way, since crude is their raw material — a cheaper input can widen their margin. Tanker owners follow freight rates, which have their own cycle.

Are oil stocks a good dividend investment?

Several pay high dividends in good years, but the payout follows the oil price and can be cut. A high current yield on a cyclical business is not the same as a safe one — check the payout ratio and the debt on the individual stock page.

What is the difference between upstream and downstream?

Upstream is finding and producing oil; downstream is refining and selling it. They earn from different things and can move in opposite directions, so an oil portfolio built only from one part of the chain is less spread than it looks.

How often is the list updated?

After every close. Score, momentum and price targets are recalculated automatically, so the order always reflects the latest trading day.

← All themes