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Earnings are expected to sharply rise in 2026 for Exxon, Chevron, and Ecopetrol.
Chevron is expected to grow earnings by 115.9% this year on higher oil prices.
Ecopetrol, a Zacks Rank #1 (Strong Buy) is dirt cheap with a P/E of 6.3.
0:00 Breaking Down The Current Oil Industry Market
10:45 Tracey’s Top Stock Picks For Your Watchlist Right Now
36:00 Episode Roundup: XOM, CVX, EC, TTE
Welcome to Episode #487 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to answer a question from a viewer in the YouTube comments in the prior week’s Market Edge Podcast. The viewer wanted to know what cheap energy stocks to buy.
Who to Buy: Independent Oil Producers or Integrated Oil Companies?
When the Iran War broke out, Tracey recommended buying US or Canadian independent oil and natural gas producers, not the big integrated oil companies. The integrated oil companies, who explore and produce natural gas and oil, but who also refine it, and sell refined products like gasoline at service stations, had more exposure to the Middle East conflict.
Some of the integrated oil companies had energy infrastructure in the Middle East and others were in partnerships with Middle East energy companies or countries, for exploration and production.
The integrated oil companies seemed riskier in Feb 2026 when the war first broke out.
But since then, these companies have reported earnings so investors now have more information about exposure to the War and shutdowns of production.
With oil prices still elevated three months after the war began, that meant higher earnings for the integrated oil companies.
That is why the Zacks Rank has become so bullish on the big oil companies. There are 17 companies in the industry of Integrated Oil – International. Out of those, 9 are Zack Rank #1 (Strong Buy) stocks.
The Strait of Hormuz has been shut for three months. It’s time for investors to consider the integrated oil companies again.
Exxon Mobil is an American energy company. It is one of the largest integrated oil companies in the world. Exxon Mobil has a market cap of $620 billion.
Shares of Exxon Mobil busted out to new all-time highs on the Iran War but are now treading water. It’s up just 1.2% in the last 3 months, which is about the length of time of the war. However, Exxon is higher year-to-date, having gained 20.6%.
It’s cheap. Exxon Mobil trades with a forward price-to-earnings (P/E) ratio of 13. A P/E ratio under 15 usually indicates a company has value.
Earnings are expected to jump 64.4% in 2026. Thanks to rising oil prices, the analysts have been aggressively raising their full year earnings estimates. 2026 jumped to $11.49 from $6.60 just 90 days ago. Last year, Exxon made just $6.99.
Exxon rewards shareholders with a dividend, which is currently yielding 2.8%.
Exxon Mobil is now a Zacks Rank #3 (Hold) but was a higher rank when Tracey recorded the podcast.
Should a big oil company like Exxon Mobil be on your short list?
Chevron is also an American energy company. It has a market cap of $367 billion. Chevron is famous for being in Berkshire Hathaway’s equity portfolio.
Shares of Chevron have treaded water the last 3 months, much like Exxon. It’s down 1% in that time. Year-to-date, it has gained 17%.
Earnings are expected to soar 115.9% to $15.74 from $7.29 last year. But 90 days ago, Chevron was only expected to make $6.66. It’s been a massive turnaround thanks to higher oil prices.
Chevron is cheap. It has a forward P/E of just 11.7. It also rewards shareholders with a dividend. It’s paying a solid dividend, with a yield of 3.9%.
Chevron is still a Zacks Rank #1 (Strong Buy) stock.
Should a big oil company like Chevron also be on your short list?
Ecopetrol S.A. is a Colombian energy and infrastructure company with 19,000 employees. It has a market cap of $30.5 billion. Ecopetrol is the largest company in Colombia.
It has an interesting business, as it does your usual oil production and refining, but also energy transmission, renewables, and toll roads. Ecopetrol has a telecom business in Brazil, Argentina, and Chile.
Shares of Ecopetrol are outperforming this year. Over the last 3 months, it’s gained 24.3% and is also up 46% year-to-date.
Because it’s a foreign company, there isn’t much coverage by the analysts. Zacks has just three analysts covering the company. But the 2026 Zacks Consensus is looking for $2.37, up from $1.02 just 90 days ago.
The shares are trading near 1-year highs but it’s still cheap. Ecopetrol has a forward P/E of just 6.3. A P/E under 10 is considered to be a deep value.
Ecopetrol is shareholder friendly. It pays a dividend, currently yielding 4.4%.
The company is also a Zacks Rank #1 (Strong Buy).
Should a Colombian big oil company like Ecopetrol be on your short list?
What Else Should You Know About Cheap Big Oil Stocks?
Tune into this week’s podcast to find out.
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Top Big Oil Stocks to Buy Now
Key Takeaways
Welcome to Episode #487 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to answer a question from a viewer in the YouTube comments in the prior week’s Market Edge Podcast. The viewer wanted to know what cheap energy stocks to buy.
Who to Buy: Independent Oil Producers or Integrated Oil Companies?
When the Iran War broke out, Tracey recommended buying US or Canadian independent oil and natural gas producers, not the big integrated oil companies. The integrated oil companies, who explore and produce natural gas and oil, but who also refine it, and sell refined products like gasoline at service stations, had more exposure to the Middle East conflict.
Some of the integrated oil companies had energy infrastructure in the Middle East and others were in partnerships with Middle East energy companies or countries, for exploration and production.
The integrated oil companies seemed riskier in Feb 2026 when the war first broke out.
But since then, these companies have reported earnings so investors now have more information about exposure to the War and shutdowns of production.
With oil prices still elevated three months after the war began, that meant higher earnings for the integrated oil companies.
That is why the Zacks Rank has become so bullish on the big oil companies. There are 17 companies in the industry of Integrated Oil – International. Out of those, 9 are Zack Rank #1 (Strong Buy) stocks.
The Strait of Hormuz has been shut for three months. It’s time for investors to consider the integrated oil companies again.
3 Top Big Oil Stocks to Buy Now
1. Exxon Mobil Corp. (XOM - Free Report)
Exxon Mobil is an American energy company. It is one of the largest integrated oil companies in the world. Exxon Mobil has a market cap of $620 billion.
Shares of Exxon Mobil busted out to new all-time highs on the Iran War but are now treading water. It’s up just 1.2% in the last 3 months, which is about the length of time of the war. However, Exxon is higher year-to-date, having gained 20.6%.
It’s cheap. Exxon Mobil trades with a forward price-to-earnings (P/E) ratio of 13. A P/E ratio under 15 usually indicates a company has value.
Earnings are expected to jump 64.4% in 2026. Thanks to rising oil prices, the analysts have been aggressively raising their full year earnings estimates. 2026 jumped to $11.49 from $6.60 just 90 days ago. Last year, Exxon made just $6.99.
Exxon rewards shareholders with a dividend, which is currently yielding 2.8%.
Exxon Mobil is now a Zacks Rank #3 (Hold) but was a higher rank when Tracey recorded the podcast.
Should a big oil company like Exxon Mobil be on your short list?
2. Chevron Corp. (CVX - Free Report)
Chevron is also an American energy company. It has a market cap of $367 billion. Chevron is famous for being in Berkshire Hathaway’s equity portfolio.
Shares of Chevron have treaded water the last 3 months, much like Exxon. It’s down 1% in that time. Year-to-date, it has gained 17%.
Earnings are expected to soar 115.9% to $15.74 from $7.29 last year. But 90 days ago, Chevron was only expected to make $6.66. It’s been a massive turnaround thanks to higher oil prices.
Chevron is cheap. It has a forward P/E of just 11.7. It also rewards shareholders with a dividend. It’s paying a solid dividend, with a yield of 3.9%.
Chevron is still a Zacks Rank #1 (Strong Buy) stock.
Should a big oil company like Chevron also be on your short list?
3. Ecopetrol S.A. (EC - Free Report)
Ecopetrol S.A. is a Colombian energy and infrastructure company with 19,000 employees. It has a market cap of $30.5 billion. Ecopetrol is the largest company in Colombia.
It has an interesting business, as it does your usual oil production and refining, but also energy transmission, renewables, and toll roads. Ecopetrol has a telecom business in Brazil, Argentina, and Chile.
Shares of Ecopetrol are outperforming this year. Over the last 3 months, it’s gained 24.3% and is also up 46% year-to-date.
Because it’s a foreign company, there isn’t much coverage by the analysts. Zacks has just three analysts covering the company. But the 2026 Zacks Consensus is looking for $2.37, up from $1.02 just 90 days ago.
The shares are trading near 1-year highs but it’s still cheap. Ecopetrol has a forward P/E of just 6.3. A P/E under 10 is considered to be a deep value.
Ecopetrol is shareholder friendly. It pays a dividend, currently yielding 4.4%.
The company is also a Zacks Rank #1 (Strong Buy).
Should a Colombian big oil company like Ecopetrol be on your short list?
What Else Should You Know About Cheap Big Oil Stocks?
Tune into this week’s podcast to find out.