The 8 Best Energy Stocks to Buy Now

Oil and gas prices are likely to cool in the new year as demand slows, but analysts are still targeting major upside for these top energy stocks.

oil rigs at sunset
(Image credit: Getty Images)

The best energy stocks had an impressive run in 2022. The energy sector is up roughly 50% for the year-to-date as of this writing – easily outperforming the broader equities market. What's more, it is the only sector to post a double-digit percentage gain on the year.

But what's in store for energy stocks and energy ETFs in 2023?

Globally, oil prices continue to be volatile due to geopolitical uncertainty and weakening oil demand, especially from China. As China takes action to contain rising COVID cases, demand for oil in that country is cooling – and that has pressured crude futures in recent weeks.

And as recession risks abound heading into the new year, "global oil demand should slow further," says Francisco Blanch, head of Global Commodities and Derivatives Research at BofA Global Research. Still, Blanch sees "upside to oil prices from the European Union's Russia oil embargo, a faster-than-projected China reopening, and a potential Fed pivot in the first quarter of 2023."  

As such, investors would be wise to keep a close eye on energy stocks heading into the new year. But not all are created equal. 

Read on as we look at eight of the best energy stocks to buy now. To compile the list, we turned to the TipRanks database (opens in new tab). Each of the names featured here boasts either a Strong Buy or Moderate Buy rating from Wall Street analysts, and each offers major upside potential based on their consensus price targets.

Data is as of Dec. 8. Stocks are listed in reverse order of the amount of upside potential implied by TipRanks-surveyed analysts' consensus price targets. 

Shrilekha Pethe
Contributing Writer,

Shrilekha Pethe has over four years of experience in both financial research and writing financial content, specifically in the areas of technology, media and telecommunications. She has completed a post-graduate degree in finance.