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4 Energy Stocks to Buy as Geopolitics Reshapes Global Markets
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Key Takeaways
BP benefits from geopolitical tensions and tight oil supply, boosting earnings outlook and sector gains.
SHEL and SSL gain from disciplined capital spending and rising demand for reliable energy sources.
EC sees estimate upgrades as energy stocks rally amid inflation and higher interest rates.
Energy stocks have emerged as the standout performers on Wall Street in 2026, driven by a powerful mix of geopolitical instability, supply constraints and disciplined capital spending. After lagging during parts of the clean-energy transition narrative, the sector has staged a strong comeback, reflecting a world where energy security has once again taken center stage. The State Street Energy Select Sector SPDR ETF (XLE) has advanced 25.5% year to date, as of April 15. In such an environment, prudent investors may choose to bet on stocks like BP p.l.c. (BP - Free Report) , Sasol Limited (SSL - Free Report) , Shell plc (SHEL - Free Report) and Ecopetrol S.A. (EC - Free Report) .
A major driver of this rally has been persistent geopolitical tension across key oil-producing regions. Ongoing instability in the Middle East, combined with disruptions linked to the prolonged impact of the Russia-Ukraine conflict, has kept global crude supplies tight. Sanctions, shipping risks and strategic production decisions by major producers have all contributed to elevated oil prices, directly boosting the earnings outlook for energy companies.
At the same time, global energy policy has shifted subtly but meaningfully. Governments, particularly in Europe and parts of Asia, are prioritizing reliability alongside sustainability, leading to renewed investments in traditional energy infrastructure. This has supported demand for oil and natural gas even as renewable capacity expands.
Another critical factor is the industry’s newfound capital discipline. Unlike previous cycles, companies are avoiding aggressive overproduction, instead focusing on shareholder returns through dividends and buybacks. This restraint has helped sustain higher commodity prices and improved profitability across the sector.
The macroeconomic backdrop has also played a role. Sticky inflation and elevated interest rates have made tangible, cash-generating sectors like energy more attractive compared to high-growth technology stocks, which have faced valuation pressure in 2026.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
BP is a global integrated energy firm spanning oil, gas, renewables, fuels and retail operations. BP’s expected earnings growth rate for the current year is 59.4%. The Zacks Consensus Estimate for its current-year earnings has improved 76.5% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.
Sasol is a Johannesburg-based integrated energy, chemicals and fuels company. SSL’s expected earnings growth rate for the current year is 23.3%. The Zacks Consensus Estimate for its current-year earnings has improved 46% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.
Shell is a global energy and petrochemical firm spanning oil, gas, chemicals, renewables and retail. SHEL’s expected earnings growth rate for the current year is 43.7%. The Zacks Consensus Estimate for its current-year earnings has improved 46.2% over the past 60 days. This Zacks Rank #1 company has a VGM Score of B.
Ecopetrol is an integrated energy firm spanning oil, gas, refining, transport and infrastructure operations. EC’s expected earnings growth rate for the next year is 13.2%. The Zacks Consensus Estimate for its current-year earnings has improved 61.5% over the past 60 days. This Zacks Rank #2 company has a VGM Score of A.
Bottom Line
In the first quarter of 2026, energy stocks have emerged as both a hedge against uncertainty and a beneficiary of it. As long as geopolitical risks remain unresolved, the sector’s strength is likely to persist, reinforcing its leadership in the current market cycle.
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4 Energy Stocks to Buy as Geopolitics Reshapes Global Markets
Key Takeaways
Energy stocks have emerged as the standout performers on Wall Street in 2026, driven by a powerful mix of geopolitical instability, supply constraints and disciplined capital spending. After lagging during parts of the clean-energy transition narrative, the sector has staged a strong comeback, reflecting a world where energy security has once again taken center stage. The State Street Energy Select Sector SPDR ETF (XLE) has advanced 25.5% year to date, as of April 15. In such an environment, prudent investors may choose to bet on stocks like BP p.l.c. (BP - Free Report) , Sasol Limited (SSL - Free Report) , Shell plc (SHEL - Free Report) and Ecopetrol S.A. (EC - Free Report) .
A major driver of this rally has been persistent geopolitical tension across key oil-producing regions. Ongoing instability in the Middle East, combined with disruptions linked to the prolonged impact of the Russia-Ukraine conflict, has kept global crude supplies tight. Sanctions, shipping risks and strategic production decisions by major producers have all contributed to elevated oil prices, directly boosting the earnings outlook for energy companies.
At the same time, global energy policy has shifted subtly but meaningfully. Governments, particularly in Europe and parts of Asia, are prioritizing reliability alongside sustainability, leading to renewed investments in traditional energy infrastructure. This has supported demand for oil and natural gas even as renewable capacity expands.
Another critical factor is the industry’s newfound capital discipline. Unlike previous cycles, companies are avoiding aggressive overproduction, instead focusing on shareholder returns through dividends and buybacks. This restraint has helped sustain higher commodity prices and improved profitability across the sector.
The macroeconomic backdrop has also played a role. Sticky inflation and elevated interest rates have made tangible, cash-generating sectors like energy more attractive compared to high-growth technology stocks, which have faced valuation pressure in 2026.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
BP is a global integrated energy firm spanning oil, gas, renewables, fuels and retail operations. BP’s expected earnings growth rate for the current year is 59.4%. The Zacks Consensus Estimate for its current-year earnings has improved 76.5% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.
Sasol is a Johannesburg-based integrated energy, chemicals and fuels company. SSL’s expected earnings growth rate for the current year is 23.3%. The Zacks Consensus Estimate for its current-year earnings has improved 46% over the past 60 days. This Zacks Rank #1 company has a VGM Score of A.
Shell is a global energy and petrochemical firm spanning oil, gas, chemicals, renewables and retail. SHEL’s expected earnings growth rate for the current year is 43.7%. The Zacks Consensus Estimate for its current-year earnings has improved 46.2% over the past 60 days. This Zacks Rank #1 company has a VGM Score of B.
Ecopetrol is an integrated energy firm spanning oil, gas, refining, transport and infrastructure operations. EC’s expected earnings growth rate for the next year is 13.2%. The Zacks Consensus Estimate for its current-year earnings has improved 61.5% over the past 60 days. This Zacks Rank #2 company has a VGM Score of A.
Bottom Line
In the first quarter of 2026, energy stocks have emerged as both a hedge against uncertainty and a beneficiary of it. As long as geopolitical risks remain unresolved, the sector’s strength is likely to persist, reinforcing its leadership in the current market cycle.