Best 4 energy stocks to buy as the sector gained 4.01% yesterday

By: Mircea Vasiu
Mircea Vasiu
When not working, Mircea likes to play football and read. He's a sports fan, always on the move, and… read more.
on Jun 22, 2022

The energy sector outperformed yesterday as it was responsible for a big chunk of the gains in the US equity market. Perhaps the best way to look at it is through the eyes of the most popular energy ETF – the XLE Energy Select Sector SPDR Fund.

XLE offers exposure to the US energy industry and tends to outperform when oil prices are high. The annual dividend yield is 3.75%, and a few stocks account for a big chunk of the overall portfolio.

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Here are four energy stocks part of the XLE Energy Select Sector SPDR Fund to consider: Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), EOG Resources (EOG), and ConocoPhillips (COP).

Exxon Mobil Corporation

Exxon Mobil is one of the world’s biggest integrated oil and gas companies. The stock price gained +6.22% yesterday alone and is up +43.97% YTD.

Interestingly, Exxon Mobil was removed from the Dow Jones index in August 2020 and replaced by Salesforce. As of June 2022, Exxon Mobil stock delivered close to 200% in total returns, while Salesforce dropped close to -40%.  

Chevron Corporation

Chevron is another integrated oil and gas company in the United States that benefited from the rise in energy prices – particularly oil and gas prices. It pays a hefty dividend and has increased the annual payments to shareholders for the past six consecutive years.

Chevron’s stock price has recovered drastically from the COVID-19 pandemic lows, closely following the rise in oil prices. It now trades at a little over $150 and recently peaked at nearly $180.

EOG Resources

EOG Resources is an American company from Houston, Texas, involved in developing crude oil and natural gas and production. The stock price closed at $119.58 yesterday, and most analysts are bullish.

Out of the 63 analysts covering the stock price, 39 have issued buy ratings, and 24 have neutral ones. No analyst has issued a sell rating.

In June, Barclays Capital maintained its buy rating with a $168/share price target.

ConocoPhillips

ConocoPhillips’s stock price outperformed yesterday, gaining almost 6% in one single session. ConocoPhillips is the fourth largest holding in the XLE, following Exxon Mobil, Chevron, and EOG Resources.

Most recently, Mizuho and Morgan Stanley have maintained their buy ratings for ConocoPhillips’ stock price, with a price target of $157/share, respectively $118/share.

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