Best Energy Stocks this March 2026 in the UK

BP plc, a UK-based integrated energy major, offers a blend of oil and gas production alongside expanding renewable investments, making it an attractive option for diverse investors. With a solid dividend yield of 5.13% and impressive one-year and five-year returns of 13.92% and 61.69%, respectively, BP's shares have also seen a strong start to 2026, rising 4.3% since January 1, driven by increasing oil prices. Analysts maintain a positive outlook with ratings like "Overweight" from Piper Sandler and "Outperform" from Bernstein, reflecting confidence in BP's financial health and strategic positioning.

BP's share price has increased by 4.3% since January 1, 2026, driven by rising oil prices.

BP's stock price fell significantly after a major oil spill in the Gulf of Mexico, resulting in a 55% decrease before bottoming out on June 25.

Shell plc stands out in the energy sector, boasting a diversified portfolio that includes oil, gas, LNG, and renewable energy sources. With a strong free cash flow and a compelling dividend yield of 3.5%, it remains a favorable option for investors seeking reliable income. Despite facing challenges with recent profit declines, analysts maintain a Moderate Buy consensus, indicating a more positive outlook compared to other companies in the energy space.

Analysts rate Shell as a Moderate Buy, which is more favorable than the average Hold rating for other energy companies.

Shell's stock has declined due to weaker-than-expected fourth-quarter profits of $3.3 billion, an 11% drop from the previous year, attributed to falling oil prices.

Greencoat UK Wind is a UK-listed fund that strategically invests in 49 wind assets, positioning itself to capitalize on government support for offshore wind and the ongoing transition to domestic energy. While it currently offers a robust dividend yield of 10.90%, investors should note its 1-year return of -16.78% and 5-year return of -26.92%. The fund holds a C rating from analysts, suggesting a cautious approach may be warranted.

Drax Group plc stands out as a key player in the UK's energy transition, operating the largest biomass power station in the country. With a robust 1-year return of 43.5% and a 5-year return of 127.66%, it appeals to investors seeking reliable income, supported by a dividend yield of 3.35%. Recently upgraded to a "Buy" rating by HSBC, analysts project a positive outlook with an average price target of 905.15p, reflecting strong growth potential.

Analysts predict a 12-month price target for Drax Group plc (DRX) averaging 905.15p, with a high of 1,120.00p and a low of 680.00p, indicating a potential 4.40% increase from the current price of 867.00p.

Dynex Capital (DX) has a consensus rating of 'Buy' from analysts, with 33% recommending a Strong Buy, 33% a Buy, and 33% suggesting Hold.

Palantir Technologies (PLTR) has received a 'Buy' rating from Rosenblatt Securities, with a price target of $150.

Valeura Energy Inc. (LON:VLU) stands out as an upstream oil and gas company on the AIM market, boasting low-risk assets and robust cash flows. With a one-year return of 33.96%, it presents an attractive option for investors looking for stability in the volatile energy sector. The stock has garnered a strong analyst rating of A-, reflecting its favorable position in the market.

Valero Energy (VLO) has a Buy consensus rating from 15 analysts as of March 1, 2026, indicating a positive outlook.

The average target price for Valley National (VLY) is $14.43, with estimates ranging from $11.00 to $16.00, suggesting a potential increase of 9.65% from its last closing price of $13.16.

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