The energy sector is made up of businesses that are involved in the exploration, production, and selling of oil, gas, and renewable resources all over the world. Upstream companies like Devon Energy Corp. primarily engaged in the exploration of oil or gas deposits are among the most popular energy sector equities.
Energy stocks are frequently the most volatile of the market's key sectors. After all, other businesses, such as shops, manufacturers, and technology firms, have some say over how much they charge for their products. Unfortunately, energy companies are often at the mercy of market conditions because they deal in commodities with very visible and fixed prices, such as crude oil and natural gas.
That was a particularly terrible scenario for energy sector investors in 2020, as the COVID-19 epidemic drained demand and caused oil and gas prices to plunge. However, as the global economy recovers, it is proving to be rather beneficial. Fossil fuels got more in demand at a time when many producers have reduced operations and limited supply, producing tailwinds for many oil and gas companies.
Investors can increase their odds by listening to the pros and learning which energy firms they feel will lead the sector's sustained rebound.
Discussing the Top 10 Energy Stocks in 2021.
Golar LNG GLNG
Golar LNG is a midstream industry-based company with a market value of $1.4 billion.
Golar LNG (GLNG) is a one-of-a-kind infrastructure supplier for the natural gas industry. GLNG, like many other prominent "midstream" stocks, is involved in converting gas into liquid, storing and transferring it, and then regasifying at the end of the line.
Natural gas has a wide range of demand sources, ranging from power plants to industrial applications, and it is intimately linked to cyclical economic activity. As a result, it's hardly surprising that LNG-related stocks plummeted during the outbreak.
National Energy Services Reunited NESR
National Energy Services Reunited (NESR) is an equipment and services industry-based company with a market value of $1.4 billion.
National Energy Services Reunited (NESR) is a Texas-based company with a humorous name that conjures up images of a great union between oil billionaires.
Consider that National Energy Services Reunited was one of the few energy service firms to record an operating profit last year, and that earnings per share are expected to rise nearly 45 percent this fiscal year on 20 percent revenue growth. Furthermore, EPS are expected to rise nearly 60% in the next session on the back of more than 20% increase in revenue.
Talos Energy TALO
Talos Energy is the industry of exploration and production with a market value of $1.5 billion.
Talos Energy (TALO) shares are a good example of the risks and possible returns of minor energy production ventures. Analysts have concluded that the worst is over and that TALO will not only survive but may prosper in the next year or two. As a result, shares have more than doubled since January, and there may be more space to run.
Talos have the potential to thrive next year as the shares of Talos have just doubled since January and in fact, there is more room to run.
Valvoline is a chemical manufacturing and distribution industry-based company with $5.57 billion.
Valvoline Inc. is a lubricant and chemical manufacturer and distributor for automobiles. The company makes various products, including motor oil, antifreeze, brake fluid, grease, and more. In addition, the firm announced a quarterly dividend of $0.125 per share of common stock, payable to shareholders.
Valvoline has seen enormous growth in the last quarter with revenue of $701 million and net profit of $572 million.
Cabot Oil COG
Cabot Oil & Gas Corp. is a North American oil and gas business that develops and explores properties. Texas, Louisiana, the Rocky Mountains, the Appalachian and Anadarko Basins, and Canada are among the company's holdings. In addition, the company made an announcement that it would merge with Cimarex Energy Co. (XEC) in a stock-for-stock merger. The worth of the company is approximately about $17 billion.
Cimarex Energy XEC
Cimarex Energy Co. is an exploring and development business for crude oil and natural gas. It drills, completes, and operates wells in Oklahoma, Texas, and New Mexico, among other states. Cimarex will merge with Cabot Oil & Gas in an all-stock merger, as previously stated
Cheniere Energy LNG
Cheniere Energy is a midstream industry-based business with a market value of $21.6 billion.
Cheniere Energy is not to be confused with Cheniere Energy Partners, which has a similar name (CQP). Both companies are midstream energy infrastructure businesses that process and ship liquefied natural gas worldwide, and they both have something to offer. It would be great to know that demand for natural gas is more substantial than any other energy product.
It is expected that there would be a jump in revenue by more than 30% this fiscal year.
Consol Energy CEIX
Consol Energy is a thermal coal industry-based company with a market value of $598.2 million.
Consol Energy (CEIX), situated in Pennsylvania, isn't precisely the most forward-thinking energy company in the age of climate change. However, thermal coal and related export services are, after all, its significant business.
Despite the industrialized world shifting away from coal as an energy source, there is still a lot of business for Consol to be had abroad, especially as it still has a lot of it.
Green Plains GPRE
Green Plains is a Speciality chemicals industry-based company with a market value of $1.6 billion.
Green Plains (GPRE) is a unique chemicals company situated in Omaha that ranks as one of the significant manufacturers of ethanol in the United States if you want to branch out from the more conventional energy companies on this list.
GPRE also sells components and liquids to whiskey producers and other distilleries, although ethanol accounts for nearly 80% of the company's revenue, making it a biofuel company.
Devon Energy DVN
Devon Energy is an exploration and production industry-based company with a market value of $19.4 billion and a dividend yield of 1.6%.
Devon Energy is an energy company that develops and produces oil and natural gas fields. The company has recently announced that a fixed-plus-variable quarterly dividend of 34 cents per share, indicating a 13% increase from the previous quarter.
With ever-increasing inflation and continue demand, it is quite safe to say that DVN is one of the great energy stocks around.
Investments are subjected to both profits and risks. Like in any other investment, there is no guarantee that these energy stocks keep rising. But they are ten of the great performing assets in their industries for a decent amount of time.
The energy sector is one of the most vital segments of the economy. If you are looking for diversification of your portfolio with some number of energy stocks, the above are some good stocks to invest in.
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