We will be discussing the best oil stocks to buy now in this article, kindly read through this article to find out more. Oil is a predominant performing asset in 2022, and it is crucial to research the best oil stocks to ensure you make an intelligent investment decision.
You must thoroughly research the markets and historical data when buying stocks for the first time. If you desire to invest in oil stocks, this guide will give you a list of the top oil stocks to buy and help you decide which oil to buy.
BEST OIL STOCKS TO BUY IN 2022
Investors should consider investing in oil stocks forecast to perform well in 2022. These stocks are likely to be those that offer high dividends, have low risk, and have good growth potential. Below is the top list of the best oil stocks to buy in the year 2022, and they include the following:
#1. Chevron
Chevron is one of the most prominent oil companies in the US, and the firm is operational in over 180 nations globally. In terms of its key markets, Chevron has been exposed to almost every step of the global supply chain of oil, including everything from exploration and production to refining and logistics.
Pros:
- Production
- Rewarding Shareholders
Cons:
- Oil Prices
- Exploration Risks
- Liabilities
#2. Marathon Petroleum Corporation (MPC)
This Marathon Petroleum is a US-based oil stock focusing on crude oil and gasoline. This industry is one of the largest wholesale suppliers as it is said to produce almost three (3) million barrels of crude oil per day, especially in the present economic climate, where oil demand far outweighs supply.
You should also note that this oil stock is a diversified business with limited international exposure.
Pros:
- YTD return: Approx. 77%
- Low P/E ratio
- 2.66% dividend increases
- Diversified business
Cons:
- Limited international exposure
#3. Shell
Shell is one of the best oil stocks with great value that investors can research and buy. It is recognized internationally because of its familiar red and yellow logo and also has one of the strongest brands in oil stock. It is one of the most experienced companies in the oil industry and is judicious in assuming it will retain its leadership position in the EU.
Pros
- YTD return: Approx. 42%
- Long-standing history and extensive industry experience
- Low P/E ratio
- Massive cash pile
- 3.62% dividend
Cons
- Underperforming peers YTD
#4. ExxonMobil
ExxonMobil is a US-based stock and a major oil and gas producer; it has a huge market capitalization of over $350 billion. ExxonMobil is one of the industry’s largest and biggest oil stocks, with a long-standing history and industry experience.
Pros:
- YTD return: Approx. 68%
- Long-standing history and industry experience
- Record profits in 2022
- 4.09% dividend
Cons:
- Higher P/E ratio than most
#5. ConocoPhillips
One of the best oil stocks available is ConocoPhillips. It was founded in 2002 and is among the major US-based oil company having its stock listing on the NYSE. The firm operates in a range of global regions, including but not limited to Norway, Malaysia, Australia, and Canada.
Pros:
- Natural Gas Prices Are Rallying.
- S. Energy Exports Help Margins.
- The Long-Term Global Economic Rebound Is Real, If Uneven.
Cons:
- Global Growth Is Stalling.
- S. Overproduction Grows Surplus.
- E&P Firms Are Hit the Hardest.
#6. BP
BP is one of the oil stocks based in UK oil and gas stock with its listing on the London Stock Exchange. It carries a P/E ratio of over 13 times. As such, this theory indicates that the oil stock can be bought at a favorable entry price.
Pros:
- Deepwater Horizon Finally Settled
- Strong Dividend
- Growth Prospects
Cons:
- Oil Price Falling Again
- More Soft Earnings
- BP Stock Not Reflecting Oil
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#7. Imperial Oil Limited (IMO)
Imperial Oil is a diversified business with high insider ownership and has been in business for more than an era. It distributes fuels for retail and marine customers and creates chemical products and asphalt pavings.
Pros:
- YTD return: Approx. 55%
- High insider ownership
- Diversified business
Cons:
- Mediocre P/E ratio and dividend
#8. Suncor Energy Inc. (SU)
Suncor Energy is one of Canada’s most known companies, which focuses on developing one of the largest petroleum resource basins in the world. The company has a great sustainability track record. Suncor Energy Inc. has invested in sustainability, has an attractive dividend, and also has a low P/E ratio.
Pros:
- YTD return: Approx. 67%
- Low P/E ratio
- Attractive dividend
- Investing in sustainability
Cons:
- Missed analyst expectations several times last year
#9. Marathon Oil Corporation (MRO)
This is a business that focuses on oil exploration and production. The company centers on low-cost, high-margin areas in the US rich in oil. It has some experience with oil internationally through Equatorial Guinea. MRO also has dividend increases and share buybacks.
Pros:
- YTD return: Approx. 95%
- Dividend increases
- Share buybacks
Cons:
- Has Limited international exposure
- Low dividend
#10. Occidental Petroleum Corporation (OXY)
Occidental has a decent cash pile and also an attractive P/E multiple. Stock price appreciation may not be sustainable in this oil stock.
Pros
- YTD return: Approximately. 143%
- Experts back it
- Attractive P/E multiple
- It has a Decent cash pile
- 0.93% dividend
Cons
- Stock price appreciation may not be sustainable
#12. Halliburton
Halliburton is one of the best oil stocks for 2022. The stock does not extract or produce oil itself; on the contrary, it provides products and services to the broader energy industry. In doing so, it ensures that conventional oil companies meet their exploration targets in a very cost-efficient manner.
Pros:
- powerhouse
- International Strategy.
- Solid Financials.
Cons:
- Energy Prices.
- Fracking Business.
- competition
Conclusion
This article has reviewed and discussed some of the known oil stocks available in the market. It is advisable to note that the first thing to assess when searching or looking for the best oil stocks to buy is to look at how the company has performed against the broader market.
This guide has reviewed and talked about the best oil stocks available now in the market.Let’s have your view and opinion in the comment section on the Best oil stocks discussed in this article.
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My name is Precious Ejiofor, I am a professional self motivated, dependable writer and editor, with over 4 year of experience in writing for variety of business and platforms. I am able and capable to write on any kind of topic.
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