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Philip van Doorn

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Sept. 18, 2021, 7:56 p.m. EDT

Wall Street sees as much as 70% upside for these highly rated energy stocks in rally mode

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By Philip van Doorn

Some investors might feel guilty about making money on fossil fuels, but the table appears set for more gains in energy-stock prices.

Take a look at this chart showing price movement for continuous forward-month West Texas intermedia crude oil /zigman2/quotes/209723049/delayed CL00 +0.50% contracts over the past year:

WTI was up 3.3% early on Sept. 15 to $72.78 a barrel — quite a bump for only one trading session. And among the 32 energy stocks listed below, all but one were up in morning trading, with gains of as much as 6.9%.

WTI has risen 90% over the past year. But to put that into perspective, it actually peaked at a much higher intraday price of $112.24 on Aug. 28. 2013, before its long decline to a low of $26.05 on Feb. 11, 2016. Then it rose has high as $76.90 before its pandemic crash. You probably remember that moment in in April of 2020 when forward-month oil futures briefly dropped into negative territory amid the pandemic disruption. Now, with increasing demand for oil and natural gas as the world economy recovers from the COVID-19 slowdown, along with temporary disruptions in oil and natural gas production in the Gulf of Mexico and the disruption of wind electricity generation in the North Sea as Europe heads into home heating season, the table is set for a continued increase in energy commodity prices.

Read: EIA reports a more than 6 million-barrel weekly drop in U.S. crude supplies

Deeper dive into oil and natural gas stocks

Last week, as part of the MarketWatch Premium series, we looked at energy partnerships and the 30 oil stocks included in the Russell 1000 Index /zigman2/quotes/210598144/delayed RUI +1.69% . Now it’s time to expand the screen to the 108 energy stocks included in the Russell 3000 index. The Russell 3000 represents about 98% of the U.S. stock market.

Among the 108 energy stocks, 89 are covered by at least five analysts polled by FactSet. This is a reasonable cut-off, for a variety of opinions.

Among the 89 remaining energy stocks, 32 are rated “buy” or the equivalent by at least 75% of analysts. Here they are, sorted by the 12-month upside potential implied by consensus price targets, with dividend yields on the right:

Company Industry Price – 10:15 a.m. ET on Sept. 15, 2021 Price change – Sept. 15 Share “buy” ratings Consensus price target Implied 12-month upside potential Dividend yield
Earthstone Energy Inc. Class A /zigman2/quotes/200205106/composite ESTE Integrated Oil $8.65 3.7% 86% $14.71 70% 0.00%
Renewable Energy Group Inc. /zigman2/quotes/207492840/composite REGI Chemicals: Specialty $49.45 3.3% 81% $83.00 68% 0.00%
Falcon Minerals Corp. Class A /zigman2/quotes/205144604/composite FLMN Integrated Oil $4.50 1.8% 75% $6.73 49% 8.82%
Penn Virginia Corp. Oil & Gas Production $21.57 6.7% 80% $32.00 48% 0.00%
National Energy Services Reunited Corp. /zigman2/quotes/207980986/composite NESR Oilfield Services/ Equipment $11.99 3.1% 100% $17.58 47% 0.00%
Dorian LPG Ltd. /zigman2/quotes/209006328/composite LPG Marine Shipping $11.67 -0.2% 75% $17.00 46% 0.00%
Diamondback Energy Inc. /zigman2/quotes/201200230/composite FANG Oil & Gas Production $80.03 5.7% 91% $113.94 42% 2.38%
Northern Oil and Gas Inc. /zigman2/quotes/204572386/composite NOG Oil & Gas Production $18.30 3.6% 100% $26.04 42% 1.02%
PDC Energy Inc. /zigman2/quotes/202777853/composite PDCE Oil & Gas Production $43.95 6.9% 88% $60.88 39% 1.17%
Talos Energy Inc. /zigman2/quotes/209042948/composite TALO Oil & Gas Production $13.49 4.8% 100% $18.29 36% 0.00%
Green Plains Inc. /zigman2/quotes/204775795/composite GPRE Chemicals: Specialty $34.23 1.7% 90% $46.10 35% 0.00%
EOG Resources Inc. /zigman2/quotes/204634330/composite EOG Oil & Gas Production $73.56 5.8% 75% $98.95 35% 2.37%
Bonanza Creek Energy Inc. Integrated Oil $45.60 5.7% 100% $60.50 33% 3.25%
NexTier Oilfield Solutions Inc. /zigman2/quotes/203483289/composite NEX Oilfield Services/ Equipment $4.31 6.4% 89% $5.72 33% 0.00%
Matador Resources Co. /zigman2/quotes/204387276/composite MTDR Oil & Gas Production $30.27 4.9% 79% $39.71 31% 0.35%
Devon Energy Corp. /zigman2/quotes/209479244/composite DVN Oil & Gas Production $29.49 4.3% 85% $38.42 30% 4.39%
Pioneer Natural Resources Co. /zigman2/quotes/206736173/composite PXD Oil & Gas Production $159.07 4.0% 83% $206.79 30% 1.46%
ConocoPhillips /zigman2/quotes/207605056/composite COP Oil & Gas Production $59.19 3.9% 97% $75.44 27% 3.02%
Valero Energy Corp. /zigman2/quotes/200735463/composite VLO Oil Refining/ Marketing $65.68 1.5% 86% $83.41 27% 6.06%
Oasis Petroleum Inc. /zigman2/quotes/222659909/composite OAS Oil & Gas Production $97.53 4.4% 86% $123.71 27% 1.60%
Denbury Inc. /zigman2/quotes/221258825/composite DEN Integrated Oil $70.29 5.0% 83% $87.82 25% 0.00%
Schlumberger Ltd. /zigman2/quotes/201012972/composite SLB Oilfield Services/ Equipment $28.89 4.4% 80% $35.90 24% 1.81%
Marathon Petroleum Corp. /zigman2/quotes/209634297/composite MPC Oil Refining/ Marketing $58.91 2.3% 84% $70.00 19% 4.03%
ChampionX Corp. /zigman2/quotes/205349782/composite CHX Chemicals: Specialty $23.50 4.2% 80% $27.72 18% 0.00%
Targa Resources Corp. /zigman2/quotes/200494488/composite TRGP Oil Refining/ Marketing $45.72 3.4% 83% $53.48 17% 0.90%
Cactus Inc. Class A /zigman2/quotes/209053306/composite WHD Oilfield Services/ Equipment $36.47 3.9% 80% $42.56 17% 1.14%
Chesapeake Energy Corp. /zigman2/quotes/224537584/composite CHK Integrated Oil $64.68 4.8% 75% $75.00 16% 2.23%
Cheniere Energy Inc. /zigman2/quotes/206202121/composite LNG Oil & Gas Pipelines $91.26 3.1% 96% $105.05 15% 1.49%
Williams Cos. /zigman2/quotes/205467183/composite WMB Oil & Gas Pipelines $25.39 2.6% 83% $29.05 14% 6.63%
Baker Hughes Co. Class A /zigman2/quotes/205323712/composite BKR Oilfield Services/ Equipment $25.15 3.3% 90% $28.24 12% 2.96%
Whiting Petroleum Corp. /zigman2/quotes/204602363/composite WLL Oil & Gas Production $55.55 5.3% 75% $62.13 12% 0.00%
Energy Fuels Inc. /zigman2/quotes/203371792/delayed CA:EFR Other Metals/ Minerals $10.04 5.9% 100% $9.73 -3% 0.00%

Click on the tickers for more about each company. A stock screen is only a starting point, and the MarketWatch quote page can be an excellent start for your own research. Click here for Tomi Kilgore’s new, detailed guide to the wealth of information available for free on the quote page.

Wall Street analysts use 12-month price targets, but that can actually be a short period for a long-term investor. The last stock on the list, Energy Fuels Inc. /zigman2/quotes/203371792/delayed CA:EFR +3.07% , has unanimous “buy” ratings but has gotten ahead of its price target.

Don’t miss: Investors who want income need to understand this overlooked stock-market strategy

/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 87.79
+0.44 +0.50%
Volume: 190,549
Jan. 27, 2022 9:58a
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/zigman2/quotes/210598144/delayed
US : US Composite
2,439.72
+40.50 +1.69%
Volume: 450,475
Jan. 27, 2022 9:53a
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/zigman2/quotes/200205106/composite
US : U.S.: NYSE
$ 13.82
+0.51 +3.86%
Volume: 54,846
Jan. 27, 2022 10:07a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.17 billion
Rev. per Employee
$5.12M
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/zigman2/quotes/207492840/composite
US : U.S.: Nasdaq
$ 39.79
+0.68 +1.75%
Volume: 147,460
Jan. 27, 2022 10:08a
P/E Ratio
10.57
Dividend Yield
N/A
Market Cap
$2.03 billion
Rev. per Employee
$3.24M
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/zigman2/quotes/205144604/composite
US : U.S.: Nasdaq
$ 5.12
+0.16 +3.23%
Volume: 88,699
Jan. 27, 2022 10:06a
P/E Ratio
31.97
Dividend Yield
9.43%
Market Cap
$431.59 million
Rev. per Employee
$5.32M
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/zigman2/quotes/207980986/composite
US : U.S.: Nasdaq
$ 10.07
+0.26 +2.60%
Volume: 8,078
Jan. 27, 2022 9:53a
P/E Ratio
24.47
Dividend Yield
N/A
Market Cap
$918.18 million
Rev. per Employee
$157,413
loading...
/zigman2/quotes/209006328/composite
US : U.S.: NYSE
$ 12.14
+0.41 +3.54%
Volume: 68,375
Jan. 27, 2022 10:08a
P/E Ratio
5.68
Dividend Yield
0.00%
Market Cap
$470.45 million
Rev. per Employee
$521,762
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/zigman2/quotes/201200230/composite
US : U.S.: Nasdaq
$ 131.16
+3.76 +2.95%
Volume: 489,226
Jan. 27, 2022 10:08a
P/E Ratio
68.96
Dividend Yield
1.50%
Market Cap
$23.08 billion
Rev. per Employee
$7.57M
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/zigman2/quotes/204572386/composite
US : U.S.: NYSE American
$ 23.60
+0.71 +3.10%
Volume: 86,591
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
1.35%
Market Cap
$1.77 billion
Rev. per Employee
$29.69M
loading...
/zigman2/quotes/202777853/composite
US : U.S.: Nasdaq
$ 60.12
+2.44 +4.22%
Volume: 136,772
Jan. 27, 2022 10:08a
P/E Ratio
143.79
Dividend Yield
0.80%
Market Cap
$5.56 billion
Rev. per Employee
$3.95M
loading...
/zigman2/quotes/209042948/composite
US : U.S.: NYSE
$ 10.55
+0.36 +3.53%
Volume: 125,382
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$857.30 million
Rev. per Employee
$2.51M
loading...
/zigman2/quotes/204775795/composite
US : U.S.: Nasdaq
$ 30.39
+0.31 +1.03%
Volume: 37,286
Jan. 27, 2022 10:07a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$1.61 billion
Rev. per Employee
$3.12M
loading...
/zigman2/quotes/204634330/composite
US : U.S.: NYSE
$ 110.36
+2.83 +2.63%
Volume: 518,105
Jan. 27, 2022 10:08a
P/E Ratio
21.42
Dividend Yield
2.71%
Market Cap
$62.91 billion
Rev. per Employee
$5.77M
loading...
/zigman2/quotes/203483289/composite
US : U.S.: NYSE
$ 6.34
+0.25 +4.11%
Volume: 457,225
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.41 billion
Rev. per Employee
$573,268
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/zigman2/quotes/204387276/composite
US : U.S.: NYSE
$ 46.10
+1.31 +2.92%
Volume: 137,081
Jan. 27, 2022 10:08a
P/E Ratio
19.92
Dividend Yield
0.43%
Market Cap
$5.26 billion
Rev. per Employee
$5.41M
loading...
/zigman2/quotes/209479244/composite
US : U.S.: NYSE
$ 52.98
+1.19 +2.30%
Volume: 1.90M
Jan. 27, 2022 10:08a
P/E Ratio
32.27
Dividend Yield
3.65%
Market Cap
$35.06 billion
Rev. per Employee
$7.74M
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/zigman2/quotes/206736173/composite
US : U.S.: NYSE
$ 215.27
+2.82 +1.33%
Volume: 183,217
Jan. 27, 2022 10:08a
P/E Ratio
39.30
Dividend Yield
1.06%
Market Cap
$52.03 billion
Rev. per Employee
$7.72M
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/zigman2/quotes/207605056/composite
US : U.S.: NYSE
$ 89.40
+2.34 +2.69%
Volume: 725,563
Jan. 27, 2022 10:08a
P/E Ratio
26.58
Dividend Yield
0.90%
Market Cap
$114.83 billion
Rev. per Employee
$3.82M
loading...
/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 83.47
+2.17 +2.67%
Volume: 621,663
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
4.65%
Market Cap
$33.18 billion
Rev. per Employee
$9.50M
loading...
/zigman2/quotes/222659909/composite
US : U.S.: Nasdaq
$ 136.26
+1.72 +1.28%
Volume: 17,411
Jan. 27, 2022 10:08a
P/E Ratio
3.21
Dividend Yield
1.45%
Market Cap
$2.68 billion
Rev. per Employee
$3.26M
loading...
/zigman2/quotes/221258825/composite
US : U.S.: NYSE
$ 73.43
+1.43 +1.99%
Volume: 16,371
Jan. 27, 2022 10:05a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.61 billion
Rev. per Employee
$816,685
loading...
/zigman2/quotes/201012972/composite
US : U.S.: NYSE
$ 40.44
+0.64 +1.61%
Volume: 3.85M
Jan. 27, 2022 10:08a
P/E Ratio
30.73
Dividend Yield
1.23%
Market Cap
$54.41 billion
Rev. per Employee
$266,616
loading...
/zigman2/quotes/209634297/composite
US : U.S.: NYSE
$ 72.94
+1.96 +2.76%
Volume: 2.13M
Jan. 27, 2022 10:08a
P/E Ratio
41.52
Dividend Yield
3.17%
Market Cap
$43.69 billion
Rev. per Employee
$1.77M
loading...
/zigman2/quotes/205349782/composite
US : U.S.: Nasdaq
$ 24.16
+0.40 +1.68%
Volume: 110,605
Jan. 27, 2022 10:08a
P/E Ratio
65.69
Dividend Yield
N/A
Market Cap
$4.80 billion
Rev. per Employee
$448,328
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/zigman2/quotes/200494488/composite
US : U.S.: NYSE
$ 58.79
+1.43 +2.49%
Volume: 140,296
Jan. 27, 2022 10:08a
P/E Ratio
50.07
Dividend Yield
2.37%
Market Cap
$13.02 billion
Rev. per Employee
$6.22M
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/zigman2/quotes/209053306/composite
US : U.S.: NYSE
$ 50.10
+0.86 +1.75%
Volume: 55,335
Jan. 27, 2022 10:07a
P/E Ratio
88.09
Dividend Yield
0.80%
Market Cap
$3.73 billion
Rev. per Employee
$570,853
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/zigman2/quotes/224537584/composite
US : U.S.: Nasdaq
$ 69.75
+1.32 +1.93%
Volume: 151,644
Jan. 27, 2022 10:08a
P/E Ratio
9.41
Dividend Yield
2.49%
Market Cap
$8.01 billion
Rev. per Employee
$4.41M
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/zigman2/quotes/206202121/composite
US : U.S.: NYSE American
$ 112.85
+2.58 +2.34%
Volume: 245,424
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
1.16%
Market Cap
$27.96 billion
Rev. per Employee
$9.08M
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/zigman2/quotes/205467183/composite
US : U.S.: NYSE
$ 29.80
+0.59 +2.02%
Volume: 1.02M
Jan. 27, 2022 10:08a
P/E Ratio
36.03
Dividend Yield
5.50%
Market Cap
$35.20 billion
Rev. per Employee
$1.99M
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/zigman2/quotes/205323712/composite
US : U.S.: Nasdaq
$ 28.03
+0.51 +1.85%
Volume: 1.03M
Jan. 27, 2022 10:08a
P/E Ratio
N/A
Dividend Yield
2.55%
Market Cap
$28.24 billion
Rev. per Employee
$373,382
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/zigman2/quotes/204602363/composite
US : U.S.: NYSE
$ 75.32
+1.72 +2.33%
Volume: 23,790
Jan. 27, 2022 10:08a
P/E Ratio
22.62
Dividend Yield
N/A
Market Cap
$2.90 billion
Rev. per Employee
$3.14M
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/zigman2/quotes/203371792/delayed
CA : Canada: Toronto
$ 7.73
+0.23 +3.07%
Volume: 112,274
Jan. 27, 2022 9:53a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.17 billion
Rev. per Employee
$25,619
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/zigman2/quotes/203371792/delayed
CA : Canada: Toronto
$ 7.73
+0.23 +3.07%
Volume: 112,274
Jan. 27, 2022 9:53a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.17 billion
Rev. per Employee
$25,619
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