With a global population of 8 billion people, this planet is hungry for energy to do everything from powering manufacturing plants, homes, mobile devices and vehicles. If you’re investing in energy stocks, you can net some sweet returns.

One of the good things about the energy sector is, in addition to the consistent need, that there’s a wide range of energy stocks from which to choose. You can invest in traditional fossil-based companies that handle oil, natural gas or coal.

Or you can look at renewable energy companies being championed as a clean alternative.

Some energy stocks and involved in the transportation of fuel products, while others can be a play on electric vehicles via lithium stocks.

Whichever direction you choose to go, however, it’s important to make sure your energy stocks are solid and have a good chance for growth.

The Portfolio Grader evaluates all stocks on earnings performance, momentum, growth, analyst sentiment and other measurements. If you see an energy stock with a good grade on the traditional “A” through “F” scale, you can be sure it’s on sound footing.

Here are seven energy stocks that are highly ranked by the Portfolio Grader now.

BP (BP)

British energy company BP (NYSE:BP) is one of the biggest traditional oil and gas companies. But it’s also branching out green energy.

Projects include a green-hydrogen project in Spain and an investment in an offshore wind power in Germany.

But the primary income for BP comes from oil and gas, and there’s a lot of it. Earnings for the first quarter included revenue of $55.71 billion and net income of $8.22 billion. The company’s operating income was just over $12 billion, which was up 67% from a year ago.

I also appreciate that BP stock pays a dividend yield of more than 4%, which is generous. Dividends are great for investors because you can either take the money as income or reinvest it in your portfolio and grow your position even more.

BP stock is up 6% this year and gets a “B” rating in the Portfolio Grader.

Exxon Mobil (XOM)

Oil and gas powerhouse Exxon Mobil (NYSE:XOM) is always a safe choice for income investors considering energy stocks.

The company makes money hand over fist, which it uses to improve the company while also returning plenty of cash to shareholders.

Earnings in the first quarter included revenue of $84.18 billion and income of $11.43 billion, or $2.43 per share. Exxon should keep those profits rolling in when it announces Q2 earnings on July 28.

And it’s spending its money wisely. In June, it announced it will acquire Denbury (NYSE:DEN), a hydrocarbon exploration company that’s skilled in using carbon dioxide to extract oil from fields that have already been exploited.

The all-stock transaction is valued at $4.9 billion.

Exxon also repurchased $4.3 billion in shares in the first quarter with plans to buy back $17.5 billion in 2023. XOM has a dividend yield of 3.5%.

It gets a “B” rating in the Portfolio Grader.

Shell (SHEL)

Another U.K.-based oil major, Shell (NYSE:SHEL), also makes the list of top energy stocks to buy now.

While it missed analysts’ expectations in its second-quarter earnings announcement on July 27, it is still doing a great job of taking care of its shareholders.

Q2 showed adjusted earnings of $5.1 billion, down 56% from a year ago. The company faced substantial comparable numbers from 2022 as the Russian invasion of Ukraine caused oil and gas prices to spike last year. It attributed the earnings miss to lower fossil fuel prices and refining margins.

However, the performance is roughly in line with Shell’s performance from two years ago, so you can consider 2022 numbers an outlier. And Shell is still looking out for shareholders, announcing $3 billion in share buybacks. It’s also raising its dividend by 15% to 33 cents per share.

SHEL stock gets a “B” rating in the Portfolio Grader.

Transocean (RIG)

Transocean (NYSE:RIG) is an offshore contract drilling company for oil and gas wells. It specializes in deepwater and harsh environment drilling services.

Transocean operates or partially owns 37 mobile offshore drilling units, including 28 ultra-deepwater floaters and nine harsh environment floaters. Its fleet operates near Mexico, Australia, Norway, Lebanon, and the East Mediterranean Sea.

And there’s plenty of work to be had. Transocean says it has a backlog of work totaling $9.2 billion, with up to another $500 million in options. That’s one reason why RIG stock is up 85% so far this year.

The second quarter earnings report is expected after the market closes on July 31. RIG stock has a “B” rating in the Portfolio Grader.

Hallador Energy (HNRG)

Coal is still a dependable and important part of the power grid. The U.S. uses about 90% of coal mined domestically for electricity, accounting for about 18% of the nation’s power supply.

Hallador Energy (NASDAQ:HNRG) is an Indiana-based energy company that operates in the Illinois Basin.

Its subsidiary, Sunrise Coal, operates four coal mines in Indiana, while another subsidiary, Hallador Power, operates a power generating station in Indiana to serve customers in the Midwest.

Earnings for the first quarter included $188.33 million in revenue and 16 cents per share, beating analysts’ estimates for $151.9 million and 16 cents per share.

HNRG stock has an “A” rating in the Portfolio Grader.

Equitrans Midstream (ETRN)

Equitrans Midstream (NYSE:ETRN), also called E-Train, is a Pennsylvania company that transports natural gas and natural gas liquids through its network of pipelines.

It operates in Ohio, West Virginia and Pennsylvania, within the Marcellus and Utica shales rich with natural gas deposits. The network includes 940 miles of natural gas pipelines and 201 miles of pipelines transporting drinking water to municipalities.

First-quarter revenue of $376.34 million increased 10% from the previous year. The company also brought in net income of $101.68 million, or earnings of 22 cents per share, beating analysts’ expectations by 10 cents per share.

E-Train also pays a generous dividend yield of 6.4%. The stock is up 38% this year and gets a “B” rating in the Portfolio Grader.

Phillips 66 (PSX)

Houston-based Phillips 66 (NYSE:PSX) is a multinational energy company involved in refining, storage, and chemicals.

The company operates in various segments, including serving aviation customers, operating fueling stations, making fuels and lubricants, as well as chemicals with automotive, industrial agriculture, pharmaceutical and personal care uses.

Q2 earnings will come out Aug. 2. The company hopes to build off a solid first quarter, when Phillips reported revenue of $35.09 billion, and EPS of $4.21, both better than expectations for $34.59 billion revenue and $3.56 EPS.

Phillips also has a dividend yield of nearly 4%, and the stock price is up 19% in the last month. PSX stock has a “B” rating in the Portfolio Grader.

On the date of publication, Louis Navellier had long positions in BP, XOM, SHEL and PSX. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.