14 Best Energy Stocks to Buy According to Wall Street Analysts

Core Insights - The S&P Energy index has increased by 33.25% since the beginning of 2026, contrasting with a 4.40% decline in the overall S&P 500 during the same period [1] Group 1: Market Dynamics - The surge in energy stocks is attributed to significant geopolitical events, including the regime change in Venezuela and the ongoing war in Iran, which has opened access to large oil reserves for American companies [2] - The US-Iran war has led to the blockage of the Strait of Hormuz, affecting about 20% of global oil and LNG supply, resulting in Brent crude prices exceeding $100 per barrel, the highest since the Russia-Ukraine conflict began in 2022 [3][4] - American oil producers are projected to generate an additional $5 billion in cash flow this month due to high prices, with a potential total windfall of $63 billion for the year if current price levels persist [5] Group 2: Company Highlights - Viper Energy, Inc. (NASDAQ:VNOM) has an upside potential of 11.37% as of March 22, with JPMorgan raising its price target from $47 to $52, reflecting nearly a 10% increase from the current share price [11] - California Resources Corporation (NYSE:CRC) has an upside potential of 12.15%, with Citi increasing its price target from $51 to $67, indicating a nearly 5% upside from current prices, as the company is seen as a prime beneficiary of rising oil prices [14][15] - California Resources Corporation generated $543 million in free cash flow in FY 2025, the highest since 2021, and returned 94% of this cash flow to shareholders, with an annual dividend yield of 2.54% [17]