Top Energy Stocks for August 2022

The power sector consists of firms centered on the exploration, manufacturing, and advertising of oil, fuel, and renewable assets around the globe. Energy sector shares embody upstream firms that primarily have interaction within the exploration of oil or fuel reserves, reminiscent of Devon Energy Corp. Downstream firms embody Marathon Petroleum Corp., which refines and processes oil and fuel merchandise for supply to customers. Among the business’s largest gamers are Chevron Corp. and ExxonMobil Corp.

Oil and fuel costs have spiked in latest months resulting from Russia’s invasion of Ukraine. President Biden known as on oil firms in June to refine extra oil into gasoline in an effort to convey down fuel costs nationwide.

Energy shares, as represented by an exchange-traded fund (ETF)—the Energy Select Sector SPDR ETF (XLE)—have dramatically outperformed the broader market, posting a complete return of 61.2% over the previous six months in comparison with the Russell 1000 Index’s whole return of -8.3%. These market efficiency numbers and all statistics within the tables under are as of July 19, 2022.

Below are the highest three power shares with one of the best worth, the quickest progress, and probably the most momentum.

These are the power shares with the bottom 12-month trailing price-to-earnings (P/E) ratios. Because income could be returned to shareholders within the type of dividends and buybacks, a low P/E ratio exhibits that you just’re paying much less for every greenback of revenue generated.

Best Value Energy Stocks

 
Price ($)
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio

APA Corp. (APA)
34.34
11.6
4.9

Marathon Petroleum Corp. (MPC)
87.85
47.5
5.2

Diamondback Energy Inc. (FANG)
116.54
20.7
7.7

Source: YCharts

APA Corp.: APA is an oil and fuel exploration and manufacturing firm. It has operations within the U.S., Egypt’s Western Desert, and the U.Okay.’s North Sea. It additionally has exploration alternatives offshore of Suriname. On June 21, the corporate introduced that move take a look at information suggests oil-in-place useful resource of roughly 180 million barrels of oil on the Krabdagu exploration nicely offshore Suriname. APA holds a 50% working curiosity within the website.Marathon Petroleum Corp.: Marathon Petroleum is a crude oil refining firm. Serving prospects throughout the U.S., the corporate refines, provides, transports, and sells petroleum merchandise. Marathon Petroleum reported Q1 2022 earnings outcomes on May 3. Net earnings grew by greater than 18-fold as whole revenues and different earnings soared year-over-year (YOY). Strong enchancment within the firm’s Refining & Marketing phase was a key think about total efficiency.Diamondback Energy Inc.: Diamondback Energy is an onshore working oil and pure fuel firm. That targets places inside the Permian Basin, each developed and undeveloped reserves to discover and purchase.

These are the highest power shares as ranked by a progress mannequin that scores firms primarily based on a 50/50 weighting of their most up-to-date quarterly year-over-year (YOY) share income progress and most up-to-date quarterly YOY earnings-per-share (EPS) progress. Both gross sales and earnings are vital components within the success of an organization.

Therefore, rating firms by just one progress metric makes a rating prone to the accounting anomalies of that quarter (reminiscent of modifications in tax legal guidelines or restructuring prices) that will make one determine or the opposite unrepresentative of the enterprise normally. Companies with a quarterly EPS or income progress of greater than 2,500% had been excluded as outliers.

Fastest-Growing Energy Stocks

 
Price ($)
Market Cap ($B)
EPS Growth (%)
Revenue Growth (%)

Marathon Oil Corp. (MRO)
22.52
15.9
1.380
49.6

Coterra Energy Inc. (CTRA)
28.14
22.7
138.7
265.0

ConocoPhillips (COP)
88.48
114.4
485.3
80.8

Source: YCharts

Marathon Oil Corp.: Marathon Oil is an impartial power firm centered on the exploration and manufacturing of oil and fuel. The firm’s operations are situated in 4 of the key useful resource performs within the U.S.—Eagle Ford, Bakken, the STACK/SCOOP, and the Permian—in addition to operations in Equatorial Guinea.
Coterra Energy Inc.: Coterra Energy is an impartial oil and fuel exploration and manufacturing firm with operations centered on the Permian Basin, the Marcellus Shale, and the Anadarko Basin.
ConocoPhillips: ConocoPhillips is an impartial power firm engaged within the exploration and manufacturing of oil and pure fuel. The firm explores for, produces, and transports crude oil, pure fuel, pure fuel liquids (NGLs), liquefied pure fuel, and bitumen. ConocoPhillips introduced Q1 2022 earnings on May 5. Net earnings grew by practically six-fold as income surged YOY. Higher costs and volumes and a tax profit pertaining to an audit closure had been all components in earnings efficiency.

These are the power shares that had the best whole return over the previous 12 months.

Energy Stocks With the Most Momentum

Price ($)
Market Cap ($B)
12-Month Trailing Total Return (%)

Antero Resources Corp. (AR)
34.88
10.9
178.1

Occidental Petroleum Corp. (OXY)
62.82
58.9
154.4

Devon Energy Corp. (DVN)
57.21
37.8
146.3

Russell 1000
N/A
N/A
-8.3

Energy Select Sector SPDR ETF (XLE)
N/A
N/A
61.2

Source: YCharts

Antero Resources Corp.: Antero Resources is an oil and pure fuel firm centered on additional exploring properties within the Appalachian Basin. In 2018 Antero assets turned the most important American producer of NGLs. The firms working space primarily consists of the Utica Shale and the Marcellus Shale. Occidental Petroleum Corp.: Occidental Petroleum is an oil and fuel exploration and manufacturing firm. The firm explores for and produces oil, NGLs, and pure fuel. It additionally transports and shops oil and pure fuel and manufactures primary chemical compounds and vinyls.Devon Energy Corp.: Devon Energy is an impartial oil and pure fuel exploration and manufacturing firm. Its operations are centered on 5 core areas: the Delaware Basin, Eagle Ford, the Anadarko Basin, the Powder River Basin, and the Williston Basin. Devon Energy introduced on June 8 that it might purchase the leasehold curiosity in addition to associated belongings of RimRock Oil and Gas, LP. RimRock’s operations are within the Williston Basin. The acquisition is predicted to shut in Q3 2022 and is valued at $865 million.

The feedback, opinions, and analyses expressed herein are for informational functions solely and shouldn’t be thought of particular person funding recommendation or suggestions to spend money on any safety or undertake any funding technique. Though we consider the data supplied herein is dependable, we don’t warrant its accuracy or completeness. The views and techniques described in our content material is probably not appropriate for all buyers. Because market and financial circumstances are topic to speedy change, all feedback, opinions, and analyses contained inside our content material are rendered as of the date of the posting and will change with out discover. The materials shouldn’t be meant as a whole evaluation of each materials truth relating to any nation, area, market, business, funding, or technique.

Investopedia requires writers to make use of major sources to help their work. These embody white papers, authorities information, authentic reporting, and interviews with business consultants. We additionally reference authentic analysis from different respected publishers the place applicable. You can be taught extra concerning the requirements we comply with in producing correct, unbiased content material in our
editorial coverage.

Take the Next Step to Invest

Advertiser Disclosure

×

The gives that seem on this desk are from partnerships from which Investopedia receives compensation. This compensation might influence how and the place listings seem. Investopedia doesn’t embody all gives out there within the market.

By clicking “Accept All Cookies”, you comply with the storing of cookies in your gadget to boost website navigation, analyze website utilization, and help in our advertising efforts.

Cookies Settings Accept All Cookies

www.investopedia.com