5 best energy stocks to buy for Q1 2024

Energy is one of the most vital industries in the world. This guide picks out the best stocks within it, whether you’re after a traditional heavyweight or the new kid on the block.
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Updated: Nov 30, 2023
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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?

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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.

#Stock tickerCompany nameTrade now
1CVXChevron Corporation
Trade CVX

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

2BPBP
Trade BP

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3XOMExxon Mobil Corporation
Trade XOM

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

4FSLRFirst Solar Inc
Trade FSLR

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

5CSIQCanadian Solar Inc
Trade CSIQ

eToro offers real assets only, no CFD products. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.

List chosen by our team of analysts, updated February 2024.

1. Chevron Corporation (NYSE: CVX)

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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. Oil companies can be controversial and tend to be affected by geopolitical events, which means they usually ebb and flow over time, but it has rewarded shareholders handsomely for taking on that risk.

It’s one of the Dividend Aristocrats, companies that have raised their dividend yield every year for at least a quarter of a century. It’s also being forced to branch out into new forms of energy that prioritise low emissions and renewables, and if it can start to grow its revenues in a more climate-conscious way then it will certainly be set up well for the long term.

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2. BP (LON: BP) 

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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.

Like its predecessor on this list, BP plc has suffered its fair share of controversies over the years. However, in the good times it tends to pay a healthy dividend and it is showing signs of bold leadership to adjust to a future where clean energy is going to be important.

It plans to increase its spending on new, low-carbon assets ten fold over the next decade. That, along with the gradual selling off of its legacy oil assets mean BP is undergoing a radical change in order to adapt to the new world order and might be available at a discount after a tough few years on the market.

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3. Exxon Mobil Corporation (NYSE: XOM) 

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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.

Like the companies above it, Exxon Mobil pays a dividend no matter what. That’s the big draw for investors in most traditional energy companies, and what makes it intriguing even if the stock price has flattered to deceive in recent years. 

The company has also prepared for the future by creating a dedicated low-carbon wing of its business to try to transition towards clean energy. Although there have been some struggles on the way, it’s a reliable pick for anyone who wants a near-guaranteed dividend payout and to own one of the most famous companies in America.

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4. First Solar (NASDAQ: FSLR)

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First Solar is an American company that specialises in renewable energy sources. Formed in 1999, the company is relatively old by renewables standards and its main source of revenue comes from manufacturing solar panels.

Solar stocks have done particularly well since the US Presidential Election in late 2020, when the change in government inspired a belief that there might be more investment in renewable energy at the federal level. First Solar’s share price almost doubled over the course of the year, even accounting for the short term plunge caused by the coronavirus in March.

A company like this is a bet on the future that relies on a demand for more alternative energy sources. As the climate crisis continues to worsen, it seems a safe assumption that the demand will come to pass. First Solar is one of the more established companies in the industry and so might prove to be a better investment than many of its competitors.  

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5. Canadian Solar (NASDAQ: CSIQ)

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Canadian Solar has been around almost as long as its predecessor on this list. Formed in 2001, it’s a Canadian company that specialises in solar panels. It has close links with China and splits most of its manufacturing and solar farms between there and its home base in Canada.

In stock market terms, 2020 and 2021 were two of the best years in the company’s history. It soared to its all time high of close to $60 per share in the early part of the year amidst the wider boom in renewable energy stocks.

Liek with First Solar, the reason it’s made this list is the potential of solar energy and the likelihood of much more investment in that space over the coming years. Established companies likely have a leg up on newer competition, and solar is a proven and safe alternative energy source.

Sign-up & trade Canadian Solar

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Where to buy the best energy shares

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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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1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

What is an energy stock?

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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?

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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.

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Latest energy news

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Imperial Petroleum (NASDAQ: IMPP) stock price has had a remarkable run in the past few months. The stock, which bottomed at $1.17 in August last year, has risen by more than 174% to $3.22. It is hovering near the YTD high of $3.61. That point was its highest point since June 23rd. Most shorted US [&
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the United States Natural Gas Fund (UNG) plunged hard this week as the price of natural gas collapsed. UNG has dropped in the past eight days and is hovering at its all-time low. It has retreated by 46% from its highest point this year. BOIL,
February 13th and 14th were important days for the world’s oil markets. While important officials from around the world met in Paris for the International Energy Agency’s 2024 ministerial meeting, OPEC also released its latest oil market outlook report.   The February outlook published by the O
Plug Power (NASDAQ: PLUG) stock price has bounced back this year, making it one of the best-performing alternative energy companies. The shares were trading at $4.57 on Tuesday, about 106% above the lowest point this year. Why PLUG shares jumped There are two main reasons why Plug Power stock price
Transocean (NYSE: RIG) stock price has been in trouble as I predicted in October. It was trading at $5.70 on Thursday, down by over 35% from its highest point in 2023. This pullback has brought the company’s market cap to $4.6 billion while its short interest has remained steady at 18.6%.  Tran
Brent and West Texas Intermediate (WTI) crude oil prices crashed hard last week even as the Red Sea attacks jumped. Brent crude crashed for three straight days and settled at $77.40, dropping by over 8% from its highest level this year. Similarly, WTI, the American benchmark, plunged to $72, down by


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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.
Jayson Derrick
Senior Editor of News
Jayson was the Lead News Editor at Invezz until 2023 overseeing the team of reporters, analysts and strategic direction of news content. He traded stocks professionally... read more.