As we navigate the season of rising home heating costs and persistently high gasoline prices, energy stocks present a compelling opportunity for growth in your portfolio. The global demand for energy is unceasing, making this an evergreen sector that never falls out of favor.
Legacy oil and gas companies offer robust energy stocks, but renewable energy also offers an intriguing avenue to diversify your energy holdings with clean technologies.
The Portfolio Grader can help you swiftly identify the top energy stocks on the market today, assigning top-rated “A” grades to stocks exhibiting superior earnings growth, sales growth, momentum, analyst sentiment, and other factors.
Consider these seven exceptional energy stocks to boost your portfolio profits.
Texas-based Diamond Offshore Drilling (NYSE:DO) operates globally with a dozen drilling rigs for deepwater oil drilling. In September, it announced a refinancing plan, issuing $550 million in senior secured second lien notes at 8.5%, due in 2030. The funds will be used to pay off debt, which stood at $510.8 million at the end of the second quarter.
The company is in a healthy financial state, with profit margins exceeding 22% and revenue growth of 49% from a year ago. DO stock is up 34% in 2023 and earns an “A” rating in the Portfolio Grader.
Flame Acquisition Corp. (NYSE:FLME) is a blank check company with a tentative deal to merge with Sable Offshore, a natural gas exploration company based in Nova Scotia. The deal, first announced in November 2022, recently received an extension from shareholders to close the merger by March 1, 2024. FLME stock also gets an “A” rating in the Portfolio Grader.
HNR Acquisition Corp. (NYSEAMERICAN:HNRA) is another SPAC with an agreement to merge with Pogo Resources, an oil company based in New Mexico. The deal is valued at $90 million, including a net aggregate of $63 million cash. HNRA stock has an “A” rating in the Portfolio Grader.
Par Pacific Holdings (NYSE:PARR) is an oil refiner operating in the western U.S. The company owns and operates nearly 550 miles of pipelines and has 13 million barrels capacity of oil storage. PARR stock is up 44% in 2023 and earns an “A” rating in the Portfolio Grader.
Utah-based Profire Energy (NASDAQ:PFIE) is an oilfield technology company that designs burner-management systems and combustion-management technologies. PFIE stock is up 112% from a year ago and earns an “A” rating in the Portfolio Grader.
Seadrill (NYSE:SDRL) is an offshore drilling contractor for the oil and gas industry. The company is in a strong financial position, with revenue in the second quarter jumping to $414 million from $266 million a year ago. SDRL stock is up 31% in 2023 and earns an “A” rating in the Portfolio Grader.
Tetra Technologies (NYSE:TTI) works with the upstream energy industry, focusing on bromine-based completion fluids, calcium chloride, water management, frac flowback, and production well testing services. TTI stock is up 79% this year and earns an “A” rating in the Portfolio Grader.
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