5 Best Energy Stocks to Buy for Q2 2025

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Here our experts choose the best stocks in the energy sector to invest in this year. We cover the basics of each company along with a description of what makes an energy stock, and show you the best place to buy the shares.

What are the top energy stocks to buy?

The top stock picks for the energy industry are in the table below. Use the links to find the latest price information or scroll down to read more about why each company made the list.

1. Chevron Corporation (NYSE: CVX)

• Market Cap: $287 billion.
• Forward P/E Ratio: 12.2
• Dividend Yield: 4.18%

Chevron is one of the largest oil companies in America. It dates its history back to the 1870s as Standard Oil, the company set up by John D. Rockefeller, a giant of American business. It’s been one of a group of seven who have dominated the oil industry for a long time. 

In modern times, Chevron has continued to be one of the biggest names on the stock market with a market cap of over $287 billion. Its size will only get bigger after it announced a deal to acquire Hess for over $50 billion.

It’s one of the Dividend Aristocrats, companies that have raised their dividend yield every year for at least a quarter of a century. Its dividend yield of 4.16% is bigger than what government bonds provide. It also has a small payout ratio, meaning that it can sustain its payouts for a long time.

2. BP (LON: BP) 

• Market Cap: $96 billion.
• Forward P/E Ratio: 7.16
• Dividend Yield: 4.92%

Another of the oil ‘supermajors’, BP is a British company that has been operating for more than a century. It was majority state-owned until the 1980s and now has three stock market listings around the world, in London, Frankfurt, and New York.

BP’s business has done well over the years. It generates over $200 billion in annual revenue and over $11 billion in net income and rewards its investors through its dividends and share buybacks. The company has also reduced its investments in clean energy, a segment that has not been rewarding in the past few years.

Most importantly, like other European energy companies, BP has always traded at a discount compared to its American peers. For example, it has a forward PE ratio of 7.16 while Chevron has a multiple of 12. This makes it a good, undervalued energy company to buy.

3. Exxon Mobil Corporation (NYSE: XOM) 

• Market Cap: $509 billion.
• Forward P/E Ratio: 12.5
• Dividend Yield: 3.38%

Yet another member of Big Oil, Exxon Mobil is also the second descendant of Standard Oil to feature on this list. Exxon Mobil is a huge oil and gas company, one of the largest in the world by revenue and market capitalisation, and has existed in its current form since 1999, when it was created through a merger between Exxon and Mobil.

Exxon Mobil’s business has grown rapidly in the past few years and this trend will continue after it acquired Pioneer Natural Resources in a $60 billion, a move that gave it access to the Permian Basin. Its market cap has grown to over $509 billion and its annual revenue soared to over $335 billion in 2023.

Unlike other companies, Exxon Mobil has not invested a lot of money in alternative energy sources like wind and solar. Instead, it has focused on oil and gas and carbon capture technology. By do doing, Exxon has become one of the most profitable companies in the US as it made a net income of over $37 billion in 203. It is also a rewarder of shareholders through dividends and share buybacks.

4. Enterprise Product Partners (NYSE: EPD)

• Market Capitalization: $61 billion.
• Forward P/E Ratio: 10/5
• Dividend Yield: 7.6%

Enterprise Product Partners is not a mainstream energy company yet it is one of the biggest names in the industry. It is a leading Master Limited Partnership (MLP) company that gathers, stores, and transports crude oil, natural gas, and petrochemicals. It owns over 50,000 miles of pipelines and 20 deepwater docks in the US.

EPD is a giant company with a market cap of over $61 billion, with its stock rising by over 486% since its IPO in 2000. It generates almost $50 billion in annual revenue and $5.6 billion in net profit, making it one of the most profitable names.

Additionally, it is beloved by income investors because of its high dividend yield of 7.68%. Most importantly, investing in the company has tax benefits since it uses a partnership model. Also, the company is quite undervalued since it trades at a price-to-earnings ratio of 10.5.

5. The Williams Companies (NYSE: WMB)

• Market Cap: $50.3 billion
• Forward P/E Ratio: 22.9
• Dividend Yield: 4.60%

The Williams Companies is another giant MLP valued at over $50.3 billion. It is a leading company that gathers natural gas, processes it, stores and transports it around the world. It is also a major player in gas marketing.

The company makes over $10 billion in annual revenue and a net profit of over $3.40 billion. It also has more room to grow as demand for natural gas will continue growing in the coming years.

WMB, like Enterprise Product Partners, uses a partnership model that makes it highly tax efficient, especially among dividend investors. It also has a high dividend yield of about 4.60%.

Where to buy the best energy shares

Use one of the brokers below to get your shares right now. Visit the website by following the links in the table, or read our detailed reviews to learn more about the pros and cons of each one.

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Plus500

Min. Deposit $100

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This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

Best energy stocks

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Demo account -

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What is an energy stock?

Energy stocks are companies involved in producing and supplying energy derived from sources like oil, natural gas, and renewable resources. Many energy stocks include integrated oil and gas companies that extract, refine, and distribute fossil fuels to consumers and businesses. There are also pure play natural gas stocks, pipeline companies, and utilities that distribute electricity.

In addition to traditional energy sources, green energy companies focused on renewable sources like solar, wind, and hydrogen aim to reduce carbon emissions by harnessing energy from sources with a lower environmental impact.

Energy stocks are a crucial part of the energy sector, which consists of various types of businesses, including pipeline companies that transport and distribute electricity, liquefied natural gas (LNG) businesses, and companies exploring innovative solutions like green hydrogen. When considering energy stocks for your investment portfolio, it’s essential to assess each company’s financial health, looking at market cap, net income, and cash flow.

Are energy shares a good investment?

Energy stocks can be an excellent addition to your investment portfolio, especially if you’re bullish on the sector’s future growth. Integrated oil and natural gas companies often pay an attractive dividend yield given their financial strength and steady cash flows. Smaller exploration and production companies offer more risk but greater upside potential if they discover new reserves.

As the global economy continues transitioning toward cleaner energy sources like renewables, natural gas, and hydrogen, stocks in these areas could see gains. However, the energy sector tends to be cyclical and vulnerable to swings in commodity prices. Profitability for oil and gas companies depends heavily on global supply and demand dynamics. The sector outperforms during periods of higher oil prices and growing energy demand. Environmental regulations, emerging technologies, and ESG trends also pose risks.

Investors can choose stable, dividend-paying majors to mitigate risk or opt for diversified energy sector exchange traded funds. Focusing on companies with favourable long-term outlooks and financial strength can help identify the best energy stocks for future growth.

Methodology: How we choose the best energy stocks

At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

• Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
• Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
• Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
• Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
• Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
• Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.