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Best Energy Stocks to Buy for December 2025

Kevin Voigt Updated on December 12, 2025

OIIPAGPWFRDTALOPARR

The energy sector remains one of the most closely watched corners of the market, shaped by shifting oil prices, geopolitical events, infrastructure spending, and the long-term global transition toward lower-carbon systems.

Is Now a Good Time to Invest in Energy Stocks?

Energy stocks have historically moved with the price of crude oil and natural gas, but today their outlook is influenced by broader forces, including global security issues, OPEC+ production decisions, U.S. shale output, clean-energy incentives and interest-rate expectations.

While short-term volatility remains common, many analysts argue the sector’s capital discipline, record free-cash-flow generation and above-market dividend yields make it attractive for long-term investors. Renewables, meanwhile, have seen recent pressure due to higher financing costs but continue to benefit from multi-decade decarbonization trends.

Here, we analyze and rank the best energy stocks to buy now ranked on a blend Zacks Rank signals, Style Scores and fundamentals:

5 Best Oil Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
Oceaneering International (OII)	8.11%	13.29	$26.05	75.88%	6.22%
Plains Group (PAGP)	0.94%	13.08	$18.84	175.63%	-8.54%
Weatherford International (WFRD)	23.99%	14.43	$80.34	-16.63%	-11.32%
Talos Energy (TALO)	21.03%	NA	$11.38	-228.57%	-6.52%
Par Pacific (PARR)	17.60%	4.92	$40.63	2,201.81%	-6.83%

*Updated on December 12, 2025.

Oceaneering International (OII)

$26.05 USD -0.60 (-2.25%)

3-Year Stock Price Performance

Premium Research for OII

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 28% (67 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 31% (11 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

B Value C Growth B Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 4.65%

Market Cap:$2.72 B (Mid Cap)
Projected EPS Growth:76.32%
Last Quarter EPS Growth: 12.24%
Last EPS Surprise:30.95%
Next EPS Report date: Feb. 18, 2026

Our Take:

Oceaneering provides subsea robotics, engineered products, and offshore project services that enable deepwater development and inspection for global energy producers. It also sells specialty technologies to aerospace and defense, adding a steadier, counter-cyclical stream.

Fundamentals are supported by a strong Q3 2025 update that showed higher revenue and improved profitability, helped by solid vessel utilization in Offshore Projects, rising ROV revenue per day, and an expanding Manufactured Products margin and backlog. Management emphasized healthy inbound orders and reiterated confidence in 2026 free-cash-flow generation.

A Zacks Rank 1 (Strong Buy) signals positive estimate revisions. Style Scores of B for Value and C for Growth suggest reasonable valuation with moderate expansion prospects. The D for Momentum flags near-term choppiness rather than a weakening outlook. On the Price, Consensus & EPS Surprise chart, price has climbed alongside rising forward EPS, with pullbacks around reports, but a constructive pattern consistent with ongoing estimate support.

Plains Group (PAGP)

$18.84 USD +0.10 (0.51%)

3-Year Stock Price Performance

Premium Research for PAGP

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 35% (83 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 31% (11 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value B Growth F Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 33.33%

Market Cap:$3.70 B (Mid Cap)
Projected EPS Growth: 175.00%
Last Quarter EPS Growth:520.00%
Last EPS Surprise: -26.19%
Next EPS Report date:Feb. 6, 2026

Our Take:

Plains GP Holdings controls the general partner of Plains All American, a major crude-oil and NGL midstream operator with gathering, pipelines, and export connectivity anchored in the Permian Basin. The platform’s scale and basin exposure give it durable, fee-based cash flows.

The latest quarter highlighted improving profitability despite softer revenue, reflecting operating discipline and portfolio actions. Management advanced strategic steps around NGL and Permian footprint positioning. Plains reported solid leverage near the low end of its target, and closed acquisitions that deepen crude connectivity, underpinning distribution sustainability and potential growth.

A Zacks Rank 1 with Style Scores of A for Value and Growth signals favorable revisions and attractive valuation, while the Momentum score F cautions that news-flow and capital-markets activity can still sway the units. On the chart, price gains have broadly tracked rising 2026–2027 estimates. Recent consolidation looks tied to deal-related timing and closing risk rather than estimate erosion.

Weatherford International (WFRD)

$80.34 USD -0.87 (-1.07%)

3-Year Stock Price Performance

Premium Research for WFRD

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 28% (67 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 31% (11 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value C Growth C Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: -4.33%

Market Cap:$5.83 B (Mid Cap)
Projected EPS Growth:-16.59%
Last Quarter EPS Growth:-40.11%
Last EPS Surprise: -2.61%
Next EPS Report date: Feb. 4, 2026

Our Take:

Weatherford is a global energy-services provider focused on drilling, well construction, completion, and production optimization, with a growing digital and intervention toolkit that targets efficiency and lower lifecycle costs for operators.

In the latest quarter, revenue rose sequentially with a higher adjusted EBITDA margin. Management expanded its credit facility, received multiple rating upgrades, and returned cash via dividends and buybacks, evidence that balance-sheet repair has moved to optimization. While growth is normalizing, margin discipline and product launches should sustain cash generation through a slower cycle.

A Zacks Rank 2 and an A score across Value and Momentum offset a softer Growth score of C, indicating estimates are generally firm and the stock has been supported by constructive price trends despite macro noise. On the chart, shares recovered sharply from mid-2025 lows as 2026–2027 consensus stabilized and began to lift, suggesting investors are refocusing on normalized earnings power.

Talos Energy (TALO)

$11.38 USD -0.13 (-1.13%)

3-Year Stock Price Performance

Premium Research for TALO

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Hold 3

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Bottom 21% (190 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 31% (11 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value C Growth D Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 18.00%

Market Cap:$2.03 B (Mid Cap)
Projected EPS Growth:-228.57%
Last Quarter EPS Growth: 27.59%
Last EPS Surprise:45.71%
Next EPS Report date:Feb. 25, 2026

Our Take:

Talos is an independent E&P focused on oil-weighted assets in the U.S. Gulf of Mexico with additional exposure to Mexico’s Zama field. Talos has streamlined the portfolio over the past year, including monetizations around Mexico and exiting CCS to refocus on upstream returns.

Its third-quarter 2025 results emphasized operational execution. Production averaged 95 Mboe/d and adjusted free cash flow topped $100 million, enabling buybacks while leverage stayed under 1x. Guidance was also raised on higher volumes and lower costs, and recent exploration success (Daenerys) adds inventory depth.

A Zacks Rank 2 with Style Scores of A for Value, C for Growth, and B for Momentum reflects attractive valuation and improving sentiment despite uneven earnings. On the chart, shares carved a base after a multi-quarter slide, with 2026–2027 estimates stabilizing. Recent upticks suggest improving confidence as operations outpace earlier expectations.

Par Pacific (PARR)

$40.63 USD -1.27 (-3.03%)

3-Year Stock Price Performance

Premium Research for PARR

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Bottom 40% (145 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 31% (11 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value A Growth B Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 7.05%

Market Cap:$2.16 B (Mid Cap)
Projected EPS Growth: 2,202.70%
Last Quarter EPS Growth:286.36%
Last EPS Surprise: 200.51%
Next EPS Report date: Feb. 24, 2026

Our Take:

Par Pacific operates refining, logistics, and retail networks across Hawaii, the Pacific Northwest, and the Rockies, supplying conventional and renewable fuels to Western U.S. markets with constrained local supply. The system’s geographic niches and optionality are key advantages.

The most recent quarter was strong: core refining and record logistics contributions drove robust profitability, further boosted by EPA small-refinery exemptions. Par also closed its Hawaii Renewables joint venture, adding $100 million of proceeds, and reported higher liquidity and ongoing buybacks. Results highlight both step-change earnings power and the benefit of SRE tailwinds, while execution on the renewables unit provides a longer-term strategic leg.

A Zacks Rank 2 with straight A’s for Value, Growth, and Momentum underscores favorable revisions, attractive metrics, and supportive price behavior. On the chart, shares rallied off mid-2025 lows as forward EPS estimates rebased and then turned higher. Recent price improvement aligns with that upward consensus trend.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

Selections for Best Biotech Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. For this list, only companies that have average daily trading volumes of 100,000 shares or more of 95 energy companies listed on the New York Stock Exchange or Nasdaq. All information is current as of market open, Dec. 11, 2025.

General Questions About Energy Stocks

Types of energy stocks

Energy equities are diverse, spanning traditional oil and gas functions to electrification and renewable power. Below are the major categories with representative companies to help you understand where stocks fit in the broader sector.

Integrated producers

These are large energy companies involved in the full value chain—from finding and producing oil and gas (upstream), transporting it (midstream), refining it into fuels (downstream), and often selling it at retail. This breadth can help smooth earnings when one segment underperforms.

Examples:

Exxon Mobil (XOM): One of the world’s largest integrated oil majors with operations across exploration, refining, petrochemicals and emerging low-carbon solutions.
Chevron (CVX): Another U.S. supermajor with a globally diversified portfolio of upstream and downstream assets.
BP plc (BP): UK-based integrated energy company with oil/gas and growing renewable investments.
Shell plc (SHEL): Major European integrated producer also building out renewables and LNG infrastructure.

Exploration & Production (E&P)

Companies in this group focus chiefly on finding and drilling for crude oil and natural gas. Their earnings often move in step with commodity prices because they sell raw energy products.

Examples:

ConocoPhillips (COP): A large independent producer with strong positions in U.S. shale and global fields.
EQT Corporation (EQT): One of the biggest natural gas producers in the U.S., with deep Marcellus Basin exposure.
Diamondback Energy (FANG): Focused on shale oil production in the Permian Basin.
Civitas Resources (CIVI), Chord Energy (CHRD), Vista Energy (VIST): Examples of smaller/mid-cap E&Ps with exploration upside.

Midstream Pipelines

Midstream firms own and operate the infrastructure that moves and stores oil, natural gas, and related products. Their earnings tend to come from fee-based contracts rather than commodity prices, offering stability.

Examples:

Enbridge Inc. (ENB): A Canadian giant operating one of North America’s largest pipeline networks for crude and natural gas.
Kinder Morgan (KMI): Major U.S. pipeline owner transporting hydrocarbons and refined products.
Enterprise Products Partners (EPD): One of the largest midstream master limited partnerships (MLPs) with thousands of miles of pipelines.
MPLX (MPLX): A high-yield midstream MLP spun out of Marathon Petroleum.
ONEOK (OKE): Midstream operator handling natural gas liquids and pipelines across the U.S.

Refiners

Refining companies take crude oil and transform it into usable products like gasoline, diesel, jet fuel, and petrochemicals. These stocks often do well when refining margins (crack spreads) are wide

Examples:

Phillips 66 (PSX): A leading U.S. refiner also expanding into midstream infrastructure.
Valero Energy (VLO): One of the largest independent refiners with global footprint.
Marathon Petroleum (MPC): Large U.S. refiner with affiliated midstream operations.

Utilities

Utilities generate and deliver electricity or natural gas to consumers and businesses. These firms are typically more regulated and less volatile than pure commodity plays. Many are also transitioning to cleaner energy sources.

Examples:

NextEra Energy (NEE): Largest U.S. utility with a major renewable generation portfolio.
Duke Energy (DUK): Large diversified utility serving millions of customers.
Southern Company (SO): Major southeastern U.S. utility investing in grid modernization and cleaner power.
Portland General Electric (POR): Regional utility with a growing renewable footprint.
Constellation Energy (CEG): Nuclear-focused power generator with natural gas and geothermal exposure.

Renewables

These stocks focus on energy generation from sustainable sources like wind, solar, hydro, geothermal, and emerging technologies such as hydrogen and wave power. They may also include service providers in the clean-energy infrastructure space.

Examples:

Brookfield Renewable Partners (BEP): Operates an extensive portfolio of wind, solar, and hydro assets globally.
Ormat Technologies (ORA): Specialized in geothermal and solar power projects.
SolarEdge (SEDG), First Solar (FSLR), Canadian Solar (CSIQ): Growing names in solar generation and component manufacturing.
Eco Wave Power (WAVE): Early-stage wave energy technology company with high growth potential.
Quanta Services (PWR): Not a pure renewable but a key player in building and maintaining power grids and clean infrastructure.

Quick takeaway for Energy Stock Investing:

Traditional energy investors often favor integrated producers and E&Ps for commodity exposure and dividends.
Income-oriented investors may like midstream pipelines and utilities.

Growth-focused strategies commonly target renewable energy and infrastructure names.

What are the benefits of buying energy stocks?

High dividend yields relative to the broader market.
Strong correlation to inflation and commodity cycles.
Global demand for oil, natural gas, and power remains durable.
Capital-return programs (buybacks, dividends) have strengthened in recent years.

What are the risks of buying energy stocks?

Volatile crude and natural-gas prices.
Political/regulatory risk.
High capital requirements.
Demand destruction during recessions.
Technological disruption from clean-energy alternatives.

Energy Stocks vs. Energy ETFs

Stocks offer targeted exposure and potential for outsized gains if you pick winners.
ETFs provide diversification across subsectors, reducing company-specific risk.

Top Energy ETFs to Invest In

ETFs provide diversified exposure across oil producers, refiners, pipelines, and renewable-energy companies. Popular examples include:

Energy Select Sector SPDR Fund (XLE) — Tracks major S&P 500 energy giants.
Vanguard Energy ETF (VDE) — Broader basket of U.S. energy stocks.
iShares Global Clean Energy ETF (ICLN) — Focused on solar, wind, and green-tech names.
Alerian MLP ETF (AMLP) — Concentrates on income-heavy pipeline operators.

Investment Strategy & Suitability

Are dividend-paying energy stocks a good investment?

Yes—many investors favor energy companies for their historically strong dividends, supported by robust free-cash-flow generation and capital discipline.

Are energy stocks a good hedge against inflation?

Often. Oil and gas prices typically rise when inflation climbs, and producers can benefit from commodity-linked revenues.

How do energy stocks perform during a recession?

They tend to soften as fuel demand falls, though stable-cash-flow midstream operators and utilities often hold up better.

What energy stocks should I hold long-term?

Integrated majors, high-quality pipelines, regulated utilities, and established renewable developers tend to offer durable long-term returns.

Should I invest in traditional or renewable energy?

A balanced approach works for many investors: traditional companies provide cash stability, while renewables offer long-term growth potential.

How to Select Energy Stocks

When evaluating energy names, consider:

Balance-sheet strength: Favor companies with low debt, strong cash flow, and solid liquidity to withstand commodity volatility.
Capital-allocation strategy: Look for disciplined spending, smart investment priorities, and a clear plan for shareholder returns.
Dividend sustainability: Choose firms with stable cash generation, reasonable payout ratios, and reliable long-term dividend policies.
Exposure to favorable regions: Companies operating in high-productivity, low-cost areas (e.g., Permian Basin, LNG export hubs) often deliver stronger margins.
Production cost per barrel: Low-cost producers are more resilient when oil and gas prices fall and typically outperform over time.
Growth pipeline: Evaluate upcoming projects—such as renewable buildouts, LNG expansions, or refinery upgrades—that support future earnings.
Historical returns on capital: Consistently strong ROIC signals efficient management and durable value creation.

Energy Stock Trends and Market Factors

How are energy stocks affected by oil prices?

Oil prices remain the most influential variable. Producers benefit from rising crude, while refiners perform best when input costs are low and demand is strong.

What’s the forecast for the energy sector?

Analysts expect continued capital discipline, stable dividends, and a multi-year growth cycle in LNG exports. Renewables should gain momentum as financing conditions improve and global clean-energy spending rises.

How do rising interest rates impact energy stocks?

Higher rates increase borrowing costs, which can slow renewable-energy development. For oil producers, the impact is milder due to strong cash positions.

What are analysts saying about the energy market?

Most major research firms see a balanced oil market, steady global demand growth, and favorable long-term trends for both LNG and low-carbon technologies. Volatility may remain elevated, but the sector’s valuation and cash-return profile remain attractive relative to the S&P 500.