3 Smart Oil Stocks to Buy in 2025
Energy stocks delivered an underwhelming performance in 2024. For example, the Energy Select Sector SPDR Fund — which holds the energy stocks listed in the S&P 500 — delivered a meager 2% return last year, significantly underperforming the broader market index’s 23% return. Oil prices, which initially rallied but ended the year right about where they started, kept a lid on oil stocks last year.
While oil stocks performed poorly last year, they could bounce back in 2025. Devon Energy (NYSE: DVN), ConocoPhillips (NYSE: COP), and Chevron (NYSE: CVX) stand out to a few Fool.com contributors as the smartest ones to buy in the new year. Here’s why they think these oil stocks could deliver standout performances in 2025.
Reuben Gregg Brewer (Devon Energy): Oil and natural gas are highly volatile commodities. The recent 20% jump in natural gas in a single trading session is proof of that. For most investors, playing it safe with an integrated energy major is the best bet for 2025, or any year for that matter. But if you think energy prices will rebound in 2025, well, a company focused on producing oil and natural gas will likely be the more attractive option. Devon Energy fits that bill with a U.S.-focused portfolio of oil and natural gas assets.
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