Investing in energy stocks can be both exciting and challenging. The energy sector is known for its volatility, especially during times of high oil prices or geopolitical tensions. Many traders flock to energy stocks in search of quick gains, and some top performers in this sector have proven to be resilient over the years.
While past performance is not always an indicator of future success, it’s worth noting that some energy stocks have consistently outperformed the market. Even renowned investors like Warren Buffett have shown interest in energy companies like Occidental Petroleum.
Below is a list of the best-performing energy stocks as of July 2024, based on data from the Energy Select Sector SPDR Fund ETF (XLE).
Top Energy Stocks in July 2024
| Company and ticker symbol | Performance in 2024 |
|---|---|
| Targa Resources (TRGP) | 48.3% |
| Diamondback Energy (FANG) | 29.1% |
| The Williams Companies (WMB) | 22.0% |
| Valero Energy (VLO) | 20.6% |
| Marathon Oil (MRO) | 18.7% |
| Marathon Petroleum (MPC) | 16.9% |
| ONEOK (OKE) | 16.1% |
| Exxon Mobil (XOM) | 15.1% |
| Kinder Morgan (KMI) | 12.6% |
| Phillips 66 (PSX) | 6.0% |
Data as of June 28, 2024
Considering Energy Stock Investments
Investing in individual energy stocks requires a deep understanding of the industry and the specific assets of each company. While the potential for high returns exists, energy stocks are also prone to volatility and bankruptcy risks.
For those seeking a more diversified approach, investing in energy-focused ETFs or mutual funds can provide exposure to the sector without the need for in-depth research. These funds offer a balanced portfolio of energy stocks, reducing the impact of individual company performance on your investments.
Whether you choose to invest in individual stocks or funds, it’s crucial to grasp the factors influencing the energy market to make informed decisions.
Final Thoughts
While tracking the hottest energy stocks can be enticing, it’s essential to focus on long-term prospects rather than past performance. Understanding the fundamentals of a business and its potential for future growth is key to successful investing in the energy sector.
Remember, investing is a strategic game, and you don’t have to rush into every opportunity. Take your time, analyze your options, and make informed decisions to secure your financial future.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Past performance is not indicative of future results.