Top Energy Stocks for August 2022

The energy sector is composed of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Energy sector stocks include upstream companies that primarily engage in the exploration of oil or gas reserves, such as Devon Energy Corp. Downstream companies include Marathon Petroleum Corp., which refines and processes oil and gas products for delivery to consumers. Among the industry’s biggest players are Chevron Corp. and ExxonMobil Corp.

Oil and gas prices have spiked in recent months due to Russia’s invasion of Ukraine. President Biden called on oil companies in June to refine more oil into gasoline in an effort to bring down gas prices nationwide.

Energy stocks, as represented by an exchange-traded fund (ETF)—the Energy Select Sector SPDR ETF (XLE)—have dramatically outperformed the broader market, posting a total return of 61.2% over the past six months compared to the Russell 1000 Index’s total return of -8.3%. These market performance numbers and all statistics in the tables below are as of July 19, 2022.

Below are the top three energy stocks with the best value, the fastest growth, and the most momentum.

These are the energy stocks with the lowest 12-month trailing price-to-earnings (P/E) ratios. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Best Value Energy Stocks
 
Price ($)
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio
APA Corp. (APA)
34.34
11.6
4.9
Marathon Petroleum Corp. (MPC)
87.85
47.5
5.2
Diamondback Energy Inc. (FANG)
116.54
20.7
7.7

Source: YCharts

APA Corp.: APA is an oil and gas exploration and production company. It has operations in the U.S., Egypt’s Western Desert, and the U.K.’s North Sea. It also has exploration opportunities offshore of Suriname. On June 21, the company announced that flow test data suggests oil-in-place resource of roughly 180 million barrels of oil at the Krabdagu exploration…..
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