Episode summary
Top Big Oil Stocks to Buy Now
Zacks Market Edge
· · 38 min · Hosts: Tracey Ryniec, Mark Zinski, Neena Mishra, Ethan Feller
Summary
The host argues that big oil looks attractive again because crude has stayed elevated after the Iran war, with WTI around 90 to 95 and inventories still drawing down. She says the shutdown of the Strait of Hormuz, disruptions in Iraq and Kuwait, and the winding down of strategic reserve releases are keeping the market tight, which supports earnings for integrated oil companies. She also notes that refining margins are helping companies that have downstream exposure, not just producers.
Her main ideas are Exxon Mobil (XOM) and Chevron (CVX), which she says rank as Zacks #1 stocks and still look compelling despite pulling back from their highs. Exxon is her top integrated pick, aided by Guyana and possible renewed interest in Venezuela, while Chevron gets a higher dividend and strong estimate revisions. She also highlights Ecopetrol (EC) as a cheaper Latin American name with oil, gas, infrastructure, and telecom assets, and TotalEnergies (TE) as another integrated name benefiting from higher crude and strong refining economics.
The broader view is that energy is cyclical, but this phase still favors oil stocks because prices are much better than the sub-$70 environment that was expected earlier in the year. She prefers companies with strong reserves, rising estimates, and enough downstream exposure to benefit from crude volatility.
Key takeaways
- The host says elevated crude prices and ongoing supply disruptions make integrated oil stocks attractive again, especially with WTI still around 90 to 95.
- Exxon Mobil (XOM) is her top integrated oil pick because of Guyana, possible Venezuela exposure, and improving earnings estimates.
- Chevron (CVX) is a close second, with a higher dividend yield and strong upward revisions to 2026 and quarter estimates.
- Ecopetrol (EC) stands out as a cheaper, smaller integrated name with a 4.69% dividend yield and rising estimates.
- TotalEnergies (TE) is benefiting from refining strength and a recent breakout, even though its dividend yield is much lower than some peers.
Notable quotes
“I consider it to be the top of the integrateds. Sorry for all you Chevron fans, but Chevron comes in a close second now on my list”
“So this is when we get the rise in the oil prices. Um possibly as soon as this summer into July if we're not seeing the straight reopen before then”
“higher prices can cure a lot of ills”
How the episode opens
Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.
I'm your host, Tracy Rinick, and this week I'm going solo to talk about a topic that one of you left in the comments section on the YouTube video last week. And as I've said, I read the comments. So, I aim to please.
So, that's why I'm covering the energy stocks today. Also, I was on tap to do the top stock picks of the week video here at Sachs, which we do every week, and it features Zach's number one stocks. And I noticed on the list that there were several oil companies on there, which makes sense because with oil prices higher, the uh earnings have all been adjusted higher as well.
But uh then I started kind of poking around and looking further at the integrated oil companies because I've covered some of the producers right when the Iran war broke out, but I have not covered the integrates because I felt like people should just go for the producers, go for the US or anybody outside of uh the Middle East basically producing oil because then their infrastructure would still be intact. The large integrated oil companies uh like a total in France for instance and Exxon Mobile have uh exposure in the Middle East. They have facilities and infrastructure refineries and uh they're in partnership with other oil companies and governments in the Middle East to produce the oil.
So, some of that has been shut down and or maybe is damaged. So, that's why I was saying to stay away from some of those companies, but we have had the uh earnings reports from them coming in and things are still looking pretty good on the earnings side, at least for some of the big integrated.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- big oil stocks
- oil prices
- zacks strong buy
- energy sector outlook
Companies and tickers mentioned
- XOM
- CVX
- EC
- TTE
- Exxon Mobil
- Chevron
- Ecopetrol
- TotalEnergies
Watch the episode
Watch “Top Big Oil Stocks to Buy Now” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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