Best Energy Stocks for 2025

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Energy prices offered a modest return in 2024, as investors were more enthusiastic about chasing the big returns offered by the S&P 500, which appreciated more than 20%. So far in 2025, most energy stocks have lost ground, as oil prices and demand for energy have fallen in the face of new tariffs and the threat of a recession.

But that doesn’t mean that it’s time to abandon ship — energy will always be needed, so this could be an opportunity to buy the dip. While you’re waiting, most energy companies also pay substantial dividends. And energy companies in general get criticized for the massive amounts of profits they are making, so it might not be a bad strategy to devote at least a portion of your portfolio to energy, depending on your investment objectives and risk tolerance.

With that in mind, here’s a look at some of the best energy stocks for 2025.

Best Energy Stocks in 2025

1. ConocoPhillips
2. Chevron
3. Occidental Petroleum
4. Brookfield Renewable Partners
5. First Solar
6. Southern Company

1. ConocoPhillips (COP)

• Price as of Apr. 21, 2025: $87.55
• Market cap: $110.68 billion

ConocoPhillips is an oil and gas exploration, production and transportation company headquartered in Texas, with operations in 13 countries worldwide.

ConocoPhillips stock has fallen nearly 13% so far this year, in line with WTI Crude’s drop of just under 12%. However, analysts are undeterred. Of the 30 who follow COP, 28 rate it a “buy” or a “strong buy.” The average 12-month price target is $120.21, suggesting a 37% gain for the stock, which also yields a solid 3.51%.

2. Chevron (CVX)

• Price as of Apr. 21, 2025: $133.73
• Market cap: $233.59 billion

Chevron is an upstream, midstream and downstream oil company — meaning it handles exploration and production, transportation, and refining and retail. It drills in the U.S. Gulf of Mexico and offshore Western Australia and West Africa. After transporting and refining crude oil, it sells gasoline to consumers at Chevron, Texaco and Caltex gas stations. The company produces other products and services for industrial, commercial and consumer applications.

Chevron’s stock has fallen 7.67% YTD, helping boost its current dividend yield to a hefty 4.96%. This is important because many investors buy Chevron for its sizable dividend, which it has now increased for 38 consecutive years. Sixteen of 25 analysts rate it a “buy” or a “strong buy,” with an average 12-month price target of $170.72.

3. Occidental Petroleum (OXY)

• Price as of Apr. 21, 2025: $39.02
• Market cap: $38.31 billion

Occidental Petroleum Corp. has oil and gas assets in the U.S., Africa, the Middle East and Latin America. The company is focused on providing traditional energy sources in a low-carbon environment. Warren Buffett has been buying up shares of OXY for Berkshire Hathaway, its largest holder, with a stake of about 28% as of Feb. 2025, according to Yahoo! Finance.

As of Apr. 21, OXY was down 21.03% on the year, trading only a few points above its 52-week low of $34.78. Most analysts — 18 out of 28 — recommend holding it. However, the average 12-month price target of $50.37 suggest there’s still tremendous upside in the stock, to the tune of 29%.

Renewable Energy Stocks

In spite of the changing administration in Washington, renewable energy is still making headway across the U.S., and it remains a top priority for many governments — and for investors. Here are some of the top renewable energy stocks this year.

4. Brookfield Renewable Partners (BEP)

• Price as of Apr. 21, 2025: $21.51
• Market cap: $13.40 billion

Brookfield Renewable has hydroelectric, wind and solar power, as well as storage facilities, in North America, South America, Asia and Europe. With renewable energy top of mind for many, the company has good prospects.

As of Apr. 21, Brookfield Renewable stock was down 6.23% year to date and up 3.56% over the past year. The company pays a sizable dividend of $1.49 per share, good enough for a 6.92% current yield. Of the 19 analysts who follow the stock 14, rate it a “buy” or a “strong buy.” The average of the analysts’ price estimates a year from now is $29.38.

5. First Solar (FSLR)

• Price as of Apr. 21, 2025: $122.45
• Market cap: $13.13 billion

First Solar manufactures photovoltaic modules for solar panels. The company claims to have the best environmental profile in the industry, using less energy, water and semiconductor material than its competitors.

First Solar stock is a bit of a wild stock, with its 1.48 beta suggesting it’s 48% more volatile than the overall stock market. For the year, FSLR is already down 30.52%, and it pays no dividend. However, long-term holders have been rewarded, as First Solar’s 3-year and 5-year returns trounce the S&P 500 index.

Analysts are still hot on the stock, with 34 of 39 analysts calling it a “buy” or a “strong buy” while maintaining an average 12- month price target almost double current levels.

6. Southern Company (SO)

• Price as of Apr. 21, 2025: $90.23
• Market cap: $99.27 billion

Southern Company provides electricity to customers in three states and natural gas to customers in four, totaling 9 million homes and businesses.

It is the parent company of electric companies Alabama Power, Georgia Power and Mississippi Power, and of natural gas companies Southern Company Gas, Atlanta Gas Light, Chattanooga Gas, Nicor Gas and Virginia Natural Gas. It is also the parent company of Southern Nuclear, Southern Power, PowerSecure, Southern Telecom and Southern Linc.

Analysts aren’t fully behind the company. Zacks Investment Research rates it a 4 for a “sell,” while among analysts polled by Yahoo! Finance, 13 of 20 rate it a “hold.” The average price target of those analysts is just $91.82, suggesting the stock will barely budget over the next year. However, the stock does have a dividend yield of 3.14%, and its focus on the American South could act as a diversifier for your other energy holdings.

Why Invest in Energy Stocks?

Whether from fossil fuels or natural gas or greener technologies like wind or solar, there will always be a huge need for energy in America. Investing in energy stocks can be a great way to participate in this need. A diversified portfolio of energy stocks can give investors access both to old-line fossil fuel companies — that for better or worse still power the vast majority of America’s energy needs — along with renewable energy companies that promise to be the future. Such a blended energy portfolio can offer both reliable dividend payouts and the potential for significant future capital appreciation.

Energy Stocks vs. Other Investment Options

While many energy stocks have betas of less than 1, meaning they move up and down in price less than the overall market, many green stocks, like solar stocks, can actually be quite volatile. But even the less volatile energy stocks are cyclical, meaning when the economy is bad, they can trade down significantly. Different legislative policies can also put both new and old energy stocks at risk. For these and other reasons, you might want to look at some other types of investments instead of simply buying individual energy stocks. Here are some options:

• Energy mutual funds or ETFs: You can remain invested in the energy sector without having to put all your eggs in one basket. Rather than buying potentially volatile individual stocks, mutual funds/ETFs can help diversify your exposure to the industry.
• Non-correlated assets: Even if you get some level of diversification from an energy sector fund or ETF, you’re still subject to the same forces that tend to affect the entire industry. Owning stocks of funds in different sectors, such as housing, healthcare, technology and so on, can give you even greater diversification within your overall portfolio.

Risks of Investing in Energy Stocks

Energy stocks can be highly cyclical. This means that their share price can move up and down rapidly based on current economic conditions. When the economy is booming and oil prices are up, it means there’s a lot of demand for what energy companies are selling. This leads to high stock prices. But the opposite is also true. When demand falls, so too do energy prices, and stocks suffer.

There are also political and social issues surrounding energy stocks. Old-line fossil-fuel companies, for example, are often targeted by activists as being “sin stocks,” adding to their controversy. They also tend to be supported or maligned on a varying basis depending on which party controls Congress and the White House, something which is true of clean energy stocks as well. Stocks in many other industries aren’t as affected by these variables.

Trends Shaping the Energy in 2025

Different energy companies also have varying strategies that can affect their prices on a specific level. Some fossil fuel companies, for example, focus more on exploration and finding new wells, while others focus on distribution and refining. As in any industry, some are managed more efficiently than others and can generate more productive profits. And some companies pay higher dividends than others. All of these factors can affect stock prices.

In 2025, oil prices have fallen, and there are rising concerns about a forthcoming recession. That, along with the rapid-fire policies coming out of the White House, may have a big effect on energy companies in 2025.

How to Buy Energy Stocks

The process for buying value stocks is as simple and straightforward as buying any other type of stock:

• Choose a brokerage platform: You’ll generally want to look for a broker that charges zero commissions on stock trades while still providing you with good customer service, a mobile app and enough investment options to meet your needs.
• Search for the company’s ticker: You’ll need the stock ticker symbol to enter any trades.
• Research your investment: Just because a stock meets the general definition of being a “value stock” doesn’t mean that it’s going to go up in value anytime soon, or that it matches your investment objectives and risk tolerance. Do your own homework before you enter any financial transactions.
• Decide how much to invest: Advisors generally recommend that investors diversify their portfolios, rather than pinning their fortunes to a single stock. It’s never been easier to diversify thanks to the rise of zero-commission brokers that allow you to buy fractional shares of stock.
• Enter your trade: Armed with all of the information above, you’ll be ready to enter your trade on your broker’s online platform.

Top Stocks To Invest In

Best Energy Stocks

• Gold Stocks
• Lithium Stocks
• Mining Stocks
• Oil Stocks
• Natural Gas Stocks
• Renewable Energy Stocks
• EV Stocks
• ESG Stocks

Best Tech Stocks

• Tech Stocks
• Biotech Stocks
• Artificial Intelligence Stocks
• Semiconductor Stocks

Daria Uhlig contributed to the reporting for this article.

Data was compiled on Apr. 21, 2025, and is subject to change. Unless otherwise noted, information on analyst ratings was sourced from Yahoo! Finance.

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