Energy’s Geopolitical Jackpot: 7 Stocks to Ride the Tightening Screws


  • Chevron (CVX): Chevron’s integrated oil business could see sustained relevance.
  • ConocoPhillips (COP): ConocoPhillips’ upstream focus may rise in pertinence.
  • Cameco (CCJ): Cameco may see downwind benefits from the Russian uranium ban.
  • Read more about the top energy stocks to buy today!
Energy Stocks to Buy - Energy’s Geopolitical Jackpot: 7 Stocks to Ride the Tightening Screws

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With news that the Russians opened another front in its belligerence against Ukraine, it’s clear that energy stocks to buy need to rise to the forefront. Geopolitically, the narrative is only becoming more intense, with fears rising that global supply chains could be disrupted.

It’s not a far-fetched concept. Before Congress approved an import ban on Russian-sourced uranium, concerns existed that the Kremlin could choose to cut supplies of the critical energy resource to the U.S. and Western nations. With tensions escalating, anything can happen.

Plus, it’s not just Europe that has raised alarm. The situation in the Middle East is fluid and could also erupt in chaos. That could easily disrupt crucial global oil supply chains, which could significantly impact the economy.

About the only cynical winners is the energy space. With that, below are energy stocks to buy.

Chevron (CVX)

Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath
Source: Sundry Photography /

As an integrated oil and gas giant, Chevron (NYSE:CVX) makes an easy case for energy stocks to buy. While ideological and political forces are pushing renewable energy infrastructure – no doubt an important endeavor – the reality is that the world still runs on oil. Like it or not, Chevron will probably be relevant for years, if not decades to come.

Financially, there’s just no stopping the giant. Yes, the average earnings surprise over the last four quarters ending in the first quarter of this year is negative. However, set aside the miss in Q3 2023 and the company continues to do what it does best: deliver consistent profits for its stakeholders. For this consistency, investors must pay 1.59X trailing-year revenue. That’s not awful.

For fiscal 2024, analysts are looking for earnings per share of $12.74 on revenue of $199.03 billion. Last year, the company delivered earnings of $12.27 per share on sales of $187.73 billion. Further, the blue-sky sales target calls for $218.94 billion. That’s not unreasonable based on the geopolitical framework. It’s one of the energy stocks to buy.

ConocoPhillips (COP)

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions
Source: Golden Dayz /

Specializing in the production and transportation of crude oil and other hydrocarbon-based products, ConocoPhillips (NYSE:COP) is largely involved in the upstream component of the energy value chain, along with shades of midstream relevance. Moving forward, the geopolitical backdrop will likely make upstream specialists all the more vital. It’s crucial that we source hydrocarbons from friendly (or friendlier) jurisdictions.

To be fair, ConocoPhillips’ financial performance has been somewhat choppy. Still, even with misses in Q2 2023 and Q1 2024, the overall earnings surprise during the past four quarters stands at 3.13%. For the pertinence and strong results (when the company’s on), investors must pay a trailing-year revenue multiple of 2.64X. That’s high. However, it could be a relative discount based on what happens in the geopolitical realm.

For now, experts are anticipating EPS of $8.69 on revenue of $59.54 billion. That’s a modest improvement over last year’s results of $8.77 EPS on sales of $58.57 billion. Here’s the thing, though. The blue-sky revenue target calls for $68.56 billion. That’s reasonable and it makes COP one of the energy stocks to buy.

Cameco (CCJ)

CCJ Stock: Hand in long yellow glove holding a chunk of uranium material

While the hydrocarbon sector is getting all the “fun” so to speak, investors shouldn’t ignore the nuclear arena. For that, we have Cameco (NYSE:CCJ), one of the most important ideas among energy stocks to buy in the uranium space. With Congress approving a Russian uranium ban, the focus will shift on boosting North American supplies of nuclear fuel. That should boost Canada-based Cameco.

Financially, it’s important for investors to plug their nose a bit. If you look strictly at the past four quarters performance, it’s ugly. We’re talking about an earnings surprise of 1.95% below parity. However, some timing issues could have been responsible for the latest Q1 miss. Moving forward, experts see a much brighter future.

By the end of fiscal 2024, EPS could land at 69 cents on revenue of $2.22 billion. Last year, the company posted earnings of 57 cents on sales of $1.89 billion. Moreover, the high-side revenue target for this year stands at $2.39 billion. That’s not unreasonable based on the latest political gyrations. Thus, CCJ should be on your radar of energy stocks to buy.

NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screen
Source: madamF /

A powerhouse in the renewable energy space, NextEra Energy (NYSE:NEE) falls under the utilities space, specifically regulated electric. Per its public profile, NextEra generates transmits and distributes electric power to retail and wholesale customers in North America. It generates electricity through a variety of means, most notably wind and solar.

Interestingly, NEE started off the year rather disappointingly. However, circumstances have shifted in recent months. At the moment, shares are up almost 20% on a year-to-date basis. With the geopolitical backdrop becoming increasingly fraught, more emphasis will be placed on alternative energy sources. That’s likely to favor NEE stock and the underlying investments in renewable energy.

To be fair, NEE trades at a rich premium of 5.56X trailing-year revenue. Further, it’s only getting richer over the past few quarters. However, with the shift in the geopolitical tone, it’s possible that NEE may require a rethink. Yes, the consensus view calls for fiscal 2024 sales of $26.67 billion, down 5.1% from last year. However, the high-side target lands at $29.47 billion, which could be more realistic.

Ormat Technologies (ORA)

Storage tanks and pipelines of an Ormat Technologies (OAR) Geothermal Power Station in Wairakei, New Zealand.
Source: riekephotos /

Another player in the broader utilities space, Ormat Technologies (NYSE:ORA) engages in the geothermal and recovered energy power business in the U.S. and many other nations. It operates in three segments: Electricity, Product and Energy Storage. Primarily, Ormat is best known for its geothermal business, which involves extracting heat energy from the earth’s core.

At the moment, only a small portion of global power needs is sourced from geothermal mechanisms. However, with the geopolitical backdrop that could threaten mainline energy sources, ORA deserves to be on the radar for energy stocks to buy. Analysts seem to agree, pegging shares a consensus moderate buy with a $73.29 price target. Further, the high-side target rises to $83.

To be fair, Ormat isn’t the cheapest idea out there, with shares trading at 5.06 trailing-year revenue. However, compared to the multiple of 6.2X during Q2 2023, it’s relatively undervalued.

For fiscal 2024, analysts are looking for EPS of $2.13 on revenue of $886.67 million. Last year, the company posted earnings of $2.08 on revenue of $829.42 million.

Kinder Morgan (KMI)

Kinder Morgan logo on a sign outside the company headquarters in Houston.
Source: JHVEPhoto /

An energy infrastructure company, Kinder Morgan (NYSE:KMI) operates in the midstream component of the hydrocarbon value chain. Moving forward, this segment should gain prominence due to the overwhelming relevance. With the world continuing to run on oil, Kinder Morgan and its ilk provide the link between the hydrocarbon commodity’s exploration and production and the phase before it enters your vehicle.

Stated differently, we need midstream operators for the economy to survive and thrive. To be fair, over the past four quarters since Q1 2024, the average earnings surprise came out to 2.35% below parity. However, should geopolitical rumblings impact the broader energy ecosystem, Kinder Morgan may benefit from increased profitability. After all, the economy just can’t stop moving.

With that in mind, analysts project fiscal 2024 EPS to reach $1.21 on revenue of $17.14 billion. Further, the high-side targets stand at EPS of $1.36 on sales of $19.72 billion. In 2023, the company posted earnings of $1.06 per share on sales of $15.16 billion. Based on burgeoning conditions, KMI is one of the energy stocks to buy.

Murphy USA (MUSA)

Murphy USA gas station and convenience store located on an out parcel of a Walmart Supercenter
Source: Lawrence Glass /

Focused in the specialty retail segment of the hydrocarbon space, Murphy USA (NYSE:MUSA) represents one of the downstream players. The company operates retail stores under the Murphy USA, Murphy Express and QuickChek brands. It also operates non-fuel convenience stores. Notably, the company positions its fuel stations near popular big-box retailers, thus enhancing their visibility and desirability.

While arguably one of the most relevant energy stocks to buy, the financial performance has been choppy recently. Over the past four quarters, the average positive earnings surprise came out to only 0.32%. That’s because in Q1 of this year, Murphy USA posted EPS of $3.12 against an expectation of $4.58.

With that underweight performance, fiscal 2024’s projections – which call for EPS of $24.74 on sales of $21.71 billion – may seem a bit unrealistic. Last year, the company posted earnings of $25.49 per share on sales of $21.53 billion.

However, after a post-earnings dip, MUSA stock has been on the run. With geopolitical conditions pointed in a cynically favorable direction, Murphy USA could be one of the energy stocks to buy.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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