The Best Energy Stocks to Buy for 2025

Jason Williams

Posted December 20, 2024

Energy — it’s the lifeblood of our modern world, powering everything from your smartphone to your electric vehicle (or the gas guzzler you swear you’re going to trade in one day). But if you’ve been following the market, you know the energy sector is a bit like a high-stakes poker game: unpredictable, exciting, and not for the faint of heart.

best energy stocks to buy

With energy prices doing the cha-cha in the past few years and now calming down a bit, you might be asking yourself: is this the right moment to dive into energy stocks?

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The short answer? Probably, yes. The long answer? Well, it depends on how smart you play your cards. So let’s break it down together and talk about some of the best energy stocks to buy right now.

Why It’s Time to Find the Best Energy Stocks to Buy

The energy sector isn’t the old boys’ club of just oil and gas anymore. It’s evolving, diversifying, and rolling out the welcome mat for alternatives like wind, solar, and even geothermal.

These aren’t just buzzwords; they represent real opportunities for growth as the world shifts toward cleaner, more sustainable energy sources.

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Companies are not only adapting to meet government regulations and climate commitments, but also leveraging cutting-edge technologies to improve efficiency and reduce emissions.

Take, for instance, the rise of electric vehicles and the corresponding need for charging infrastructure. Or consider the demand for energy storage solutions to make renewable power more reliable.

These trends are not just reshaping how energy is produced and consumed; they’re creating entirely new markets for savvy investors to tap into.

But here’s the kicker: Navigating this transformation isn’t a walk in the park. Sure, it’s exciting to see startups promising to revolutionize green hydrogen or solar panels, but for every winner, there are bound to be a few duds.

That’s why you can’t just throw darts at a list of stock tickers and hope for the best. To succeed, you need to be strategic, thoughtful, and maybe just a little lucky.

It’s about recognizing long-term trends, identifying companies with solid foundations, and understanding how global factors like geopolitics and supply chains influence the market.

The good news? With so much innovation and diversification happening in the energy sector, there’s no shortage of opportunities. Whether you’re a cautious investor looking for stable returns or a risk-taker chasing the next big thing, there’s likely a corner of the energy market that fits your style.

How to Find the Best Energy Stocks to Buy

Finding the best energy stocks is like picking the ripest apple in the orchard. It takes a bit of knowledge, a keen eye, and maybe some taste-testing. Here’s your cheat sheet:

1. Understand How Companies Handle Commodity Prices

Some energy companies — like those in oil and gas exploration — are deeply tied to the prices of crude and natural gas. Others, like pipeline and storage companies, feel less of that price shock. Know where your potential investment stands.

2. Follow the Crystal Ball on Commodity Prices

OK, nobody has a real crystal ball, but looking at forecasts can help. Factors like OPEC’s mood swings, global economic health, and geopolitical tensions all play a part in pricing.

3. Consider Master Limited Partnerships (MLPs)

These midstream companies come with tax perks, but you’ll need to brush up on the tax rules. Think of it as doing a little homework for a potentially big payoff.

4. Diversify with ETFs

If picking individual stocks feels overwhelming, energy-focused ETFs offer a ready-made basket of goodies. Plus, they spread your risk across multiple companies.

5. Check the Numbers

Look for companies with solid balance sheets, reliable cash flow, and a knack for making profits, even in tough times. Think of them as the marathon runners of the sector — they’re built to go the distance.

6. Assess Management’s Game Plan

A great company can be dragged down by poor leadership. Make sure the folks steering the ship have a clear vision and the skills to execute it.

The Best Energy Stocks to Buy for 2025 (and Beyond)

Here are some names lighting up the energy world — and potentially your portfolio:

Oil and Gas Exploration and Production

  • ConocoPhillips (COP): It's bulked up with strategic acquisitions and is rewarding shareholders.
  • EOG Resources (EOG): Masters of efficiency, this company's got a strong track record of keeping costs down and profits up.
  • Coterra Energy (CTRA): A solid choice for those who like companies focused on maximizing returns.
  • Devon Energy Corp. (DVN): Low-cost production is Devon's game, and it's playing it well in places like the Delaware Basin.
  • Hess Corp. (HES): Their Guyana offshore project could be a game-changer.

Renewable Energy

  • NextEra Energy Inc. (NEE): A leader in wind and solar — these folks are shaping the renewable future.
  • Bloom Energy Corp. (BE): Innovators in green hydrogen and fuel cell systems.

Other Key Players

  • Gevo Inc. (GEVO): Tackling sustainable aviation fuel and renewable natural gas.
  • Quanta Services Inc. (PWR): Experts in energy infrastructure — a backbone of the transition to renewables.
  • Darling Ingredients Inc. (DAR): Turning waste into treasure with renewable energy and sustainable products.
  • BP PLC (BP): Diversifying into green hydrogen and solar.
  • HF Sinclair Corp. (DINO): A jack-of-all-trades with refining, marketing, and midstream operations.
  • Schlumberger Ltd. (SLB): Expanding into geothermal, hydrogen, and energy storage.
  • Halliburton Co. (HAL): Bringing digital solutions and net-zero ambitions to the oil and gas world.

The Bottom Line

Investing in energy stocks isn’t about following the herd; it’s about recognizing where the world is headed and getting there first.

Whether you’re eyeing the giants of oil and gas or the trailblazers of renewable energy, the sector has something for everyone — if you’re willing to do your homework.

So is now the time to invest? If you ask the CEO of our company, the best time to plant a tree was 20 years ago.

The second-best time? Right now.

So do your research, trust your gut, and remember: In the energy game, fortune favors the bold.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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