Best energy stocks for 2022
Energy prices have skyrocketed this year and the focus has been on the different options for powering our homes, offices and cars. Energy stocks in general have fared much better than the rest of the market this year – it’s one of the few sectors that is up overall – but it’s not too late to jump in.
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Here are some of the best energy stocks for 2022.
Oil and gas stocks
With rising gas prices, it’s no wonder gas-producing companies are doing well. Consumers may feel pain at the pumps, but investors who own oil and gas stocks are doing well. Here are some oil and gas stocks that are having a great year.
ConocoPhillips (COP) is an oil and gas exploration, production and transportation company headquartered in Texas with operations in 13 countries around the world.
ConocoPhillips stock is up 52.3% so far this year, closing Sept. 13 at $112.33. That’s one of the reasons analysts love it: Of the 21 tracking COP, six rated it a Strong Buy, nine rated it a Buy, and six recommend holding it, according to Yahoo. Finance. The 12-month average price target is $124.26.
Another reason it’s popular is that when the company announced its second quarter results on August 4, it announced a $15 billion return of capital in 2022, along with a dividend of $0.46 per share in the third quarter and a variable return in the fourth quarter cash payment of $1.40 per share.
Chevron (CVX) is an upstream (exploration and production), midstream (transportation) and downstream (refining and retail) oil company. It drills in the Gulf of Mexico in the United States, as well as off 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 manufactures other products and services for industrial, commercial and consumer applications.
Chevron’s stock closed at $159.41 on September 13, from $119.26 in January, for an impressive 33.66% year-to-date return. Sixteen of 24 analysts rate it as a buy or a strong buy, seven recommend holding it and one calls it an underperformer. The 12-month average price target is $181.52.
When the company announced its second-quarter results, it raised its share buyback forecast to as much as $15 billion. It also announced a quarterly dividend of $1.42.
Occidental Petroleum Corp. (OXY) has oil and gas assets in the United States, Africa, the Middle East and Latin America. The company focuses on providing traditional energy sources in a low carbon environment. Warren Buffett bought back shares of Oxy for Berkshire Hathaway and now owns a 20% stake in the company.
As of September 13, OXY was trading at $65.34, close to its 52-week high of $77.13. Most analysts (15 out of 24) recommend holding it, one says it is underperforming and one advises selling. But three analysts call it a buy, and four say it’s a strong buy. The 12-month average price target is $76.04.
Renewable energy stocks
The recent increase in gas prices and the impact of climate change have combined to make renewable energy a top priority for many governments – and for investors. Here are some of the top renewable energy stocks this year.
Brookfield Renewable Partners
Brookfield Renewable (BEP) owns hydroelectric, wind and solar power, as well as storage facilities, in North America, South America, Asia and Europe. With renewable energy in mind for many, the company has good prospects.
As of Sept. 13, Brookfield Renewable’s stock was up for the year, but not by much. It started the year at $35.85 and ended September 13 at $37.72. But it’s up for the year, which is a rarity in this market. Of the 12 analysts who followed the stock in August, one called it a strong buy, nine called it a buy and two recommended holding the stock. The average of analyst estimates of its price in one year is $41.88.
First Solar (FSLR) manufactures photovoltaic modules for solar panels. The company claims to have the best environmental profile in the industry, using less energy, water and semiconductor materials than its competitors.
First Solar stock is up more than 50% year-to-date and is currently trading around its new 52-week high at $140.14. Analysts are a bit lukewarm on this stock, however, with eight investors recommending holding the stock, while six call it a buy and three call it a strong buy. The 12-month average price target is $132.50, but the highest target is $187.00.
Plug Power (PLUG) provides an end-to-end green hydrogen ecosystem that uses renewable electricity and water to produce carbon-free green hydrogen, using electrolyzers. The company then transports the green hydrogen from its plants to industrial, commercial and medical users around the world, using cryogenic trailers and mobile storage units.
Plug Power stock hasn’t risen much in value this year, but it hasn’t fallen either. As of September 13, it closed at $28.91, down from $28.79 at the start of the year. In August, 29 analysts followed the action. Six rated it a solid buy and 15 rated it a buy. Eight analysts recommended keeping it. The 12-month average price target is $37.10, but one analyst expects the price to hit $78.00 within a year.
Electricity and gas producers will always be in demand as the population grows and more energy is needed. Utility stocks are often considered defensive; that is, they historically outperform many other sectors in a bear market. Here is one of the best utility stocks this year.
Southern Company (SO) 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 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.
Southern Company closed at $78.23 on September 13, very close to its 52-week high of $80.57 and significantly above its start-of-year level of $68.17. However, analysts don’t fully support the company, with one analyst calling it a strong buy, four recommending it as a buy, eight advising investors to hold the stock, two calling it an underperformer and two recommending it to sell.
Whether you want to invest in the best energy stocks, the best energy stocks, or the best clean energy stocks, these are good places to start. The demand for energy, especially clean energy, will only increase, and these stocks tend to do well even when the rest of the market doesn’t, making them a good buy in a bear market. .
Data was compiled on September 14, 2022 and is subject to change. Analyst rating information is from Yahoo Finance.