The 6 Best Energy Stocks to Buy Now

Market Overview - The start of 2025 has been challenging for U.S. stocks, with major indices underperforming compared to international markets, while the energy sector shows resilience [1] - The SPDR Energy Select Sector ETF (XLE) is down only 4.2% year-to-date, significantly better than the S&P 500's 9.8% decline [1] Energy Sector Performance - Energy stocks have outperformed due to several factors, including the growth of electric vehicle adoption and innovations in nuclear technology such as small modular reactors (SMRs) [1] - The energy sector is becoming broader, with renewables and clean energy resources gaining more focus [2] Nuclear Energy Stocks - Nuclear energy stocks provide a mix of stability and growth potential, especially amid the global shift towards clean energy [4] - Vistra Corp. (VST) integrates nuclear and solar power, showing strong operational efficiency with a 32% operating margin last quarter [6][8] - GE Vernova Inc. (GEV) is investing in next-gen nuclear technologies and reported $35 billion in revenue with $1.55 billion in net income over the past year [11] Oil and Gas Stocks - Coterra Energy Inc. (CTRA) focuses on natural gas and has a price-to-earnings ratio of 7.7, making it attractive for value-focused investors [14][15] - Western Midstream Partners LP (WES) plays a critical role in the energy supply chain with a profit margin of 43% and a dividend yield of 9.29% [17][18] Renewable Energy Stocks - Brookfield Renewable Partners LP (BEP) operates across various renewable segments and aims for net-zero emissions by 2050, reporting over $5.7 billion in revenue [20][21] - Ormat Technologies Inc. (ORA) specializes in geothermal and solar power, achieving $124 million in net profit and expanding its projects internationally [24] Future of Energy Investing - The 2025 energy investment landscape presents opportunities in both traditional and renewable energy sectors, with conventional sources providing stable returns and renewables offering long-term growth potential [25]