Although crude oil prices have dropped over the last week, several energy stocks are starting to stand out in terms of growth and valuation. Many energy companies are reaping nice profits with crude prices still over $70 a barrel despite the recent dip.
Coinciding with their increased profitability, several Zacks Oils and Energy sector stocks have made their way onto the Zacks Rank #1 (Strong Buy) list this week.
SM Energy
We’ll start with Colorado-based SM Energy, an independent oil and gas exploration and production company with operations in the coveted Permian basin. Despite soaring +25% year to date, SM still trades under $50 and at a 7.6X forward earnings multiple, trading well below industry averages.
Vitesse Energy
After going public in 2023, Vitesse Energy is another independent energy company that investors may want to consider with its stock up a very respectable +12% YTD. Headquartered in New York, Vitesse is engaged in the acquisition, development, and production of non-operated oil and natural gas properties.
Geopark
With a price tag of $10, Geopark’s stock is starting to look like a bargain at just 3X forward earnings. Geopark operates primarily in South America and is expected to see significant growth in sales and earnings in the coming years.
Bottom Line
When it comes to growth and value, SM Energy, Vitesse Energy, and Geopark are three of the most appealing stocks to consider. Now looks like an ideal time to invest considering the positive trend of rising earnings estimate revisions.
