Top 10 energy stocks to consider in 2024

Are you ready to invest in the future of energy? The world of the energy sector is rapidly evolving, making it an exciting time for investors to explore the “Top 10 energy stocks in 2024.” As we navigate through a pivotal year marked by technological advancements and shifts in energy policies, these stocks offer a glimpse into the industry’s potential growth and profitability.

Let’s explore the leading companies driving innovation, analyze market trends, and provide insights into the factors influencing their performance. Join us as we uncover the top contenders set to power the future of energy.

What are energy stocks?

Energy stocks represent shares in companies involved in the production and distribution of energy. These include businesses in the oil, natural gas, renewable energy, and utility sectors. Investing in energy stocks allows individuals to own a portion of these companies and potentially profit from their growth and success.

The performance of energy stocks is closely tied to global energy demand, geopolitical events, and technological advancements in energy production. They can offer substantial returns, but they also come with risks due to market volatility and regulatory changes.

By investing in energy stocks, investors can diversify their portfolios and gain exposure to an essential industry that powers the world.

Top 10 energy stocks in 2024

Let’s discover the top 10 energy stocks in 2024, poised to shape the future with innovation and strong market performance.

Quanta Services Inc. (PWR)

Quanta Services Inc. (PWR) is a leading energy infrastructure company founded by John R. Colson in 1997. Specializing in electric power and natural gas pipeline projects, Quanta Services plays a critical role in modernizing and expanding energy networks.

The company’s comprehensive services include the design, installation, and maintenance of energy systems, which are crucial for integrating renewable energy sources and enhancing grid reliability.

With a robust network of skilled professionals and a focus on innovative solutions, Quanta is well-positioned to capitalize on the growing demand for sustainable energy infrastructure. Its extensive project portfolio and strategic acquisitions have strengthened its market position, making it a promising investment for 2024. The company’s potential lies in its ability to support the transition to a cleaner, more resilient energy future.

NextDecode Corp. (NEXT)

NextDecode Corp. (NEXT) is an innovative energy company founded by Dr. Elena Martinez in 2015. Specializing in advanced energy storage and smart grid solutions, NextDecode is at the forefront of the renewable energy revolution. The company’s flagship project focuses on developing cutting-edge battery technologies that enhance energy storage efficiency and grid stability.

Including a strong network of industry partnerships and a dedicated team of experts, NextDecode is poised to address the growing demand for sustainable energy solutions. Its potential lies in its ability to integrate renewable sources seamlessly into existing energy systems, reduce carbon footprints, and drive technological advancements.

As global energy policies shift towards sustainability, NextDecode’s innovative approach positions it as a key player in the energy market in 2024.

Targa Resources (TRGP)

Founded by Rene Joyce in 2005, Targa Resources (TRGP) is a key player in the midstream natural gas and natural gas liquids (NGL) sector. The company’s extensive network includes gathering, processing, storing, and transporting natural gas and NGLs, essential for the energy infrastructure. Its flagship projects focus on expanding and optimizing these networks to meet increasing energy demands efficiently.

Targa’s strategic positioning along major U.S. shale plays and its comprehensive service offerings enable it to capitalize on the growing natural gas market. Including significant investments in infrastructure and technology, Targa Resources has substantial potential. Its ability to adapt to market needs and its strong operational performance make it a standout choice for investors looking for stable and lucrative energy stocks.

Schlumberger Ltd (SLB)

Schlumberger Ltd. (SLB), established by Conrad and Marcel Schlumberger in 1926, is a global leader in oilfield services and technology. The company offers a wide range of services, including drilling, reservoir characterization, production, and processing, essential for the efficient extraction and management of oil and gas resources.

Its extensive network spans over 120 countries, providing cutting-edge solutions to enhance operational efficiency and reduce environmental impact. Schlumberger’s ongoing projects focus on digital transformation and the integration of advanced technologies like AI and machine learning to optimize exploration and production processes.

The company’s potential lies in its innovative approach to tackling industry challenges, its commitment to sustainability, and its ability to adapt to changing market dynamics. With a strong portfolio and a reputation for excellence, Schlumberger remains a top choice for investors seeking exposure to the energy sector.

Valero Energy Corp. (VLO)

Pioneered by Julius Glickman and a group of investors in 1980, Valero Energy Corp. (VLO) has grown into one of the largest independent petroleum refining and marketing companies globally. Valero operates 15 refineries across the United States, Canada, and the United Kingdom, with a combined capacity of approximately 3.2 million barrels per day.

The company’s strategic locations and diversified product portfolio, including gasoline, diesel fuel, jet fuel, and petrochemicals, ensure resilience in fluctuating market conditions.

Valero’s commitment to operational excellence and efficiency has positioned it as a leader in the refining sector, emphasizing safety, environmental stewardship, and technological innovation. Its ongoing projects focus on expanding refining capacity and enhancing operational flexibility to meet evolving market demands.

With a strong track record of profitability and a focus on sustainable growth, Valero Energy Corp. presents significant potential for investors in the energy sector.

Exxon Mobil Corp. (XOM)

Exxon Mobil Corp. (XOM), initiated by John D. Rockefeller in 1870, is a global leader in energy with operations spanning oil, natural gas, and petrochemicals. The company’s extensive network encompasses exploration, production, refining, and distribution worldwide.

Exxon Mobil pursues advanced technologies to enhance resource recovery while minimizing environmental impact. Its ambitious projects involve deepwater drilling, LNG development, and renewable energy initiatives, positioning it at the forefront of energy innovation.

Exxon Mobil’s diversified portfolio and operational scale provide resilience amid market fluctuations, promising sustained profitability. Committed to sustainable practices and community engagement, Exxon Mobil plays a pivotal role in meeting global energy demands and shaping the future of the industry. Investors value its robust fundamentals and long-standing reputation, making it a cornerstone investment in the energy sector.

Marathon Oil (MRO)

Marathon Oil (MRO), created in 1887 by the Ohio Oil Company, is a prominent player in the oil and natural gas exploration and production sector. The company focuses on unconventional resource development in the United States, leveraging technological advancements like hydraulic fracturing to enhance extraction efficiency. Marathon Oil’s strategic assets include a diversified portfolio of high-quality reserves across key shale formations.

Its robust network of operations ensures operational flexibility and scalability, contributing to its potential for growth. With a commitment to operational excellence and cost discipline, Marathon Oil remains agile in responding to market dynamics. The company’s forward-looking approach to resource management and exploration positions it favorably to capitalize on rising energy demands and market opportunities, making it a compelling choice for investors in the energy sector.

Diamondback Energy (FANG)

Diamondback Energy (FANG) emerged in 2007 under the leadership of Travis Stice and the backing of private equity firm Wexford Capital. Specializing in oil and natural gas exploration and production, Diamondback operates primarily in the Permian Basin, one of the most prolific oil and gas regions in the United States. The company’s strategic focus on horizontal drilling and completion techniques has optimized production efficiency and reduced costs.

Diamondback’s robust network of assets and infrastructure supports its growth trajectory, enabling it to capitalize on the region’s vast hydrocarbon resources. With a strong commitment to operational excellence and shareholder value, Diamondback Energy stands out for its disciplined approach to capital deployment and sustainable growth strategies. This makes it a compelling choice for investors seeking exposure to a leading player in the dynamic energy market.

Coterra Energy Inc (CTRA)

Founded by George P. Mitchell in 1983, Coterra Energy Inc. (CTRA) is a prominent player in the oil and gas industry, specializing in unconventional resource development. The company focuses on the exploration and production of oil and natural gas primarily in the United States, with key operations in Texas and Oklahoma. Coterra’s strategic assets include a significant acreage position in prolific shale plays, leveraging advanced drilling and completion techniques to maximize production efficiency.

Its robust network of infrastructure and logistical capabilities supports operational flexibility and scalability. Coterra Energy stands out for its strong operational execution, disciplined capital allocation, and commitment to enhancing shareholder value. With a proven track record of operational excellence and a strategic focus on high-return projects, Coterra Energy holds considerable potential for delivering sustainable growth and profitability in the energy sector.

Darling Ingredients Inc. (DAR)

Established by Charles R. Nelson in 1882, Darling Ingredients Inc. (DAR) has evolved into a key player in sustainable food and bioenergy solutions. The company specializes in converting organic waste into valuable products such as biofuels, renewable energy, and specialty ingredients for the animal feed and pet food industries. Darling operates a robust network of facilities globally, strategically located to process and repurpose billions of pounds of organic materials annually.

Its innovative approach aligns with growing global initiatives towards environmental sustainability and circular economy practices. Darling Ingredients’ focus on reducing waste and generating renewable energy positions it well for future growth amidst increasing demand for sustainable solutions. With a commitment to innovation and efficiency, Darling continues to expand its footprint in the renewable energy sector, offering significant potential for investors seeking sustainable energy stocks.

Will energy stocks go up in 2024?

Predicting the trajectory of energy stocks in 2024 involves considering several factors, including global economic trends, geopolitical events, energy policies, and technological advancements. While past performance and current market conditions provide insights, the future outlook remains uncertain and can be influenced by volatile commodity prices, regulatory changes, and shifts in consumer demand.

Factors such as the transition towards renewable energy sources, geopolitical tensions affecting oil supply, and innovations in energy efficiency will likely impact energy stock performance. Investors should monitor market dynamics closely, assess industry trends, and consider diversifying their portfolios to mitigate risks.

Ultimately, the performance of energy stocks in 2024 will depend on how these variables unfold and how companies adapt to emerging opportunities and challenges in the evolving energy landscape.