Whether you see them or not, energy businesses play a crucial part in our daily activities, from powering our homes and businesses to powering our transportation and industries.But their prominence also brings high exposure to the ups and downs of economic and energy cycles. Luckily, the tide is turning in their favor as the industry’s 29.2% return over the past six months has topped the S&P 500 by 22.8 percentage points.
Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. Keeping that in mind, here are two resilient energy stocks at the top of our wish list and one that may face trouble.
One Energy Stock to Sell:
Excelerate Energy (EE)
Market Cap: $1.06 billion
Operating specialized vessels that can deliver up to 1.2 billion cubic feet of natural gas per day, Excelerate Energy (NYSE: EE) provides liquified natural gas regasification services using floating vessels that convert LNG back into natural gas.
Why Does EE Fall Short?
- Smaller revenue base of $1.35 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Gross margin of 29.5% is below its competitors, leaving less money to invest in exploration and production
At $33.15 per share, Excelerate Energy trades at 18.7x forward P/E. Dive into our free research report to see why there are better opportunities than EE.
Two Energy Stocks to Watch:
Gulfport Energy (GPOR)
Market Cap: $2.92 billion
With drilling operations focused on the Utica Shale in eastern Ohio and the SCOOP play in central Oklahoma, Gulfport Energy (NYSE: GPOR) drills for and produces natural gas from underground shale formations.
Why Are We Fans of GPOR?
- Annual revenue growth of 9.2% over the last ten years was superb and indicates its market share increased during this cycle
- Attractive asset base leads to wonderful unit economics and a top-tier gross margin of 69.6%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Gulfport Energy’s stock price of $162.56 implies a valuation ratio of 6.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Tidewater (TDW)
Market Cap: $3.69 billion
Operating one of the world's largest fleets with over 200 vessels spanning 30 countries, Tidewater (NYSE: TDW) operates offshore service vessels that transport supplies, equipment, and workers to oil rigs and platforms.
Why Does TDW Stand Out?
- Market share has increased this cycle as its 29.9% annual revenue growth over the last five years was exceptional
- EBITDA margin improvement of 31.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Strong free cash flow margin of 14.1% enables it to reinvest or return capital consistently
Tidewater is trading at $73.99 per share, or 16x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
