Heading into 2024, the energy sector prospects seem bright based on expectations of higher oil prices owing to OPEC+ production cuts. Furthermore, the report from the Energy Information Administration (EIA) forecasts that oil demand will grow in 2024. Additionally, oil companies have deployed their substantial cash reserves to expand their capabilities and overall operations in 2023, which should support their performance going forward.
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To help identify the best energy stocks for your portfolio, we have leveraged the TipRanks Stock Screener tool. These stocks have received a Strong buy rating from analysts and boast an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, which points to their potential to beat the broader market. Further, analysts’ price targets reflect an upside potential of more than 30%.
Here are the five key stocks from the oil sector that investors can consider.
- Cenovus Energy (NYSE:CVE) – The company engages in gas and oil provisions. Its activities include the development, production, and marketing of crude oil, natural gas liquids, and natural gas in Canada. CVE stock has an analyst consensus upside of 45.7% and a Smart Score of “Perfect 10.”
- Halliburton (NYSE:HAL) – HAL provides services and products to the energy industry related to the exploration, development, and production of oil and natural gas. The stock has an average price target of $50, which implies a 36.5% upside potential from current levels. Also, its Smart Score of eight is encouraging.
- Crescent Point Energy (NYSE:CPG) – Cresent is a North American light oil producer. Analysts currently see an upside potential of 64.7% in CPG stock. Also, it has a Smart Score of “Perfect 10.”
- Energy Transfer (NYSE:ET) – This stock has an average price target of $17.63, which implies a 32.9% upside potential from current levels. Also, it boasts an Outperform Smart Score of nine. Energy Transfer is a provider of natural gas pipeline transportation and transmission services.
- Talos Energy (NYSE:TALO): Talos focuses on the exploration, acquisition, exploitation, and development of shallow and deepwater assets near existing infrastructure. Analysts currently see an upside potential of 49.5% in TALO stock, which boasts a Smart Score of eight.
