Best Energy Stocks this May 2026

Energy Transfer (ET) stands out as a top buy according to Morningstar analysts, thanks to its leadership in the midstream pipeline and storage sector. With a strong dividend yield of 7.39%, the stock has delivered impressive long-term returns, boasting a 128.24% increase over the past five years. Analysts project a median 12-month price target of $18.00, indicating a potential upside of 15.09% based on current valuations.

Energy Transfer LP (ET) has a potential upside of 15.09% based on analysts' average price target of $21.96, and it holds a consensus rating of Strong Buy with 9 buy ratings and 3 hold ratings.

Energy Transfer LP may be undervalued, indicated by its Value Score of A, making it a suitable choice for value investors, although it has a Growth Score of D.

Devon Energy (DVN) stands out as a strong contender in the oil production sector, showcasing robust cash flow and promising growth potential. With a notable 1-year return of 53.04% and a solid 5-year return of 118.09%, it's clear why analysts have given it a median price target of $52.00, backed by strong ratings such as "Buy" from UBS and Citigroup. Additionally, the stock offers a dividend yield of 2.08%, reflecting its commitment to providing reliable income, while a DCF analysis indicates it may be undervalued by nearly 80%.

Devon Energy is estimated to be undervalued by 79.8% according to our Discounted Cash Flow analysis.

Devon Energy's current quarterly dividend is $0.24 per share, yielding 2.1%. The company has shifted to a fixed dividend structure to enhance predictability.

Devon Energy has announced a merger with Coterra Energy, aiming to create a major oil and gas producer focused on the Permian Basin, with plans for cost synergies, increased dividends, and a significant share buyback program.

Exxon Mobil stands out as a leading integrated oil major with robust fundamentals, making it an attractive investment for those seeking both value and growth opportunities through 2026. With a solid dividend yield of 2.69% and impressive returns of 37.96% over the past year and 165.68% over the last five years, it's clear that Exxon offers compelling financial performance. Analysts have a consensus Buy rating, with a median 12-month price target of $160, highlighting its potential amidst a strong balance sheet and low debt-to-equity ratio.

Exxon Mobil (XOM) has a consensus rating of Buy from 20 analysts, with 15% recommending Strong Buy, 40% Buy, 40% Hold, and no analysts advising Sell.

Exxon has a stronger balance sheet with a debt-to-equity ratio of 0.17, compared to Chevron's 0.22, indicating Exxon is in a better financial position.

Warren Buffett's Berkshire Hathaway first invested in Exxon Mobil in Q2 2009 and has made multiple trades since, buying shares five times and selling four times.

Cheniere Energy stands out as a leading LNG exporter, poised to capitalize on surging global demand while currently trading below its fair value. With a solid analyst consensus rating of "Moderate Buy" and a median 12-month price target of $256.50, this stock offers an enticing option for investors. Furthermore, it has delivered impressive returns of 248.85% over the past five years, reinforcing its attractiveness in the energy sector.

Cheniere Energy has a consensus rating of 'Moderate Buy' from 19 Wall Street analysts, with 16 buy ratings, 2 hold ratings, and 1 strong buy rating.

LNG shows potential to perform in line with the market, but it has a Growth Score of F and a Momentum Score of F, indicating it may not be suitable for momentum investors.