Three Notable Oil Stocks Worth Investing in by 2025
In 2024, energy stocks took a hit, with the Energy Select Sector SPDR Fund delivering a pitiful 2% return, compared to the S&P 500's impressive 23% gain. The lackluster performance of oil prices, which saw an initial surge but ended the year on par, dampened the spirits of oil stock investors.
However, hope isn't lost for the oil stock market in 2025. Fool.com contributors have their eyes on Devon Energy, ConocoPhillips, and Chevron as smart investment choices for the new year.
Devon Energy: Poised for Rebound
Reuben Gregg Brewer of The Motley Fool believes that Devon Energy is an attractive investment option, especially if energy prices rebound in 2025. With a U.S.-focused portfolio of oil and natural gas assets, Devon is well-positioned to capitalize on rising energy prices. Additionally, its low break-even point and investment-grade balance sheet make it a resilient choice even in tumultuous market conditions.
ConocoPhillips: Gearing Up for Growth
Following its acquisition of Marathon Oil at the end of 2024, ConocoPhillips is set to experience significant growth in 2025. Matt DiLallo of The Motley Fool highlights that this deal will deepen ConocoPhillips' production portfolio, enhance its free cash flow, and provide ample opportunities for dividend growth and share repurchases.
Chevron: A Rock-Solid Choice
Neha Chamaria of The Motley Fool recommends Chevron as a smart oil stock buy for 2025. With a robust balance sheet and a focus on cash-flow growth and shareholder rewards, Chevron is well-positioned for long-term success. In addition, its strategic investments and expected acquisition of Hess could further boost its revenue and production growth.
As you consider diving into the oil stock market in 2025, these three top picks from Fool.com contributors might offer a solid foundation for your portfolio. Keep an eye on market trends, geopolitical factors, and technological developments to maximize your investment potential.
In the context of potential investment opportunities in the oil stock market for 2025, Fool.com suggests that investors should consider Devon Energy due to its U.S.-focused portfolio and resilient balance sheet. The smartest investors may also find value in ConocoPhillips, which is expected to grow significantly following its acquisition of Marathon Oil. Lastly, Chevron, with its robust balance sheet and strategic investments, is recommended as a rock-solid choice for long-term success in the oil stock market. In the pursuit of maximum investment potential, it's essential to keep an eye on market trends, geopolitical factors, and technological developments. Smart investors might want to allocate some of their investment funds towards these top picks in the oil stock market for 2025.
In the budgeting aspect, aligned with investing in the stocks mentioned above, it would be wise to consider setting aside some financial reserves for potential fluctuations in the energy market, ensuring a balanced financial portfolio. Additionally, as part of the overall wealth management strategy, it's essential to diversify investments across various sectors, not relying solely on the oil stocks for financial stability.
