7 Best Energy Stocks to Buy in 2026 | Investing

The U.S. conflict with Iran has put a spotlight on oil and natural gas commodities as the blockage of the Strait of Hormuz shipping corridor has played a key role. But the energy landscape is much broader than fossil fuels, offering a broad range of investment choices – from volatile oil and gas stocks to staid utilities and risky but maybe rewarding startups.

Coal remains in the mix as the Trump administration works to keep aging coal-fired generation going, and soaring natural gas prices in Asia as a result of the Iran conflict are sparking more coal demand there.

Meanwhile, surging demand from artificial intelligence data centers will boost the amount of electricity the world, and especially the United States, needs. While that will be a boon for renewables and nuclear power, the clear winner there is natural gas, which can provide baseload power and burns cleaner than coal.

Even though electric vehicle demand is projected to be less than once thought, the sector is still growing and remains a key source of demand for electricity alongside AI data centers and other parts of the economy that are moving toward electrification in the face of climate change, helping the case for renewables.

With that in mind, here’s a look at seven top energy stocks to buy that span the diverse energy landscape:

Cheniere Energy Inc. (LNG)

The shale gas boom and investment in facilities that liquefy natural gas for transport by sea has made the U.S. into the world’s biggest exporter of liquefied natural gas.

Amid the boom, Cheniere Energy – which operates liquefied natural gas terminals and liquefaction projects – is the biggest U.S. exporter. The company has one of the biggest liquefaction platforms in the world, with facilities in Louisiana and Texas, and it says it is also pursuing liquefaction expansion opportunities. Natural gas emits less greenhouse gases than coal when burned to make electricity, and it is seen as a key component of the energy transition.

“Cheniere is the largest (LNG) producer in the U.S. and second in the world,” says Joe Rinaldi, chief investment officer with Quantum Financial Advisors. “It has a great growth plan; management executes fixed supply contracts and then reinvests the proceeds into capital investments.”

Rinaldi points to this natural gas producer, noting it is able to produce the commodity at low cost from the Appalachian Basin.

U.S. exports of liquefied natural gas have been a lifeline to Europe as it tries to wean itself from Russian-produced natural gas. U.S. exports of the commodity also go to Asia, which competes with Europe on prices. All of that creates additional demand for U.S. natural gas in addition to what the nation uses domestically.

As a major natural gas producer in the U.S., EQT is well positioned to take advantage of the higher natural gas prices in Europe and Asia resulting from the conflicts in Iran, Ukraine and the longer-term trend of the commodity being used as a transition fuel to help bridge the gap between coal and renewables.

Before it is exported via coastal facilities that chill the fuel, natural gas in gaseous form is often transported by pipeline to serve the large American market.

This is where midstream energy company Kinder Morgan comes in. The infrastructure company owns an interest in or operates nearly 80,000 miles of pipeline and more than 130 terminals in addition to natural gas storage and generation capacity.

In addition to transporting natural gas, the company’s pipelines move refined petroleum products, crude oil, condensate, carbon dioxide and renewable fuels. Its terminals store gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, ethanol and other renewable fuels and feedstocks.

This diversity gives Kinder Morgan cushion if the price of one commodity falls, and it makes the company a key player in the nation’s energy mix.

“Kinder Morgan is the leader in operating infrastructure in North America and controls the nation’s largest transmission system at low cost,” Rinaldi says.

Constellation Energy Corp. (CEG)

One problem with renewable energy is its intermittency when the sun isn’t shining or wind isn’t blowing. That can be overcome with battery storage, but it can also be dealt with via nuclear power.

Nuclear provides steady baseload power, like natural gas or coal, and it doesn’t release any planet-warming gas. This is one reason why major tech players like Microsoft Corp. (MSFT) and Meta Platforms Inc. (META) want to use nuclear power to run their data centers.

Constellation runs the United States’ biggest fleet of nuclear power plants and is well positioned to take advantage of the nuclear renaissance.

Over the past two years, Rinaldi’s firm has accumulated positions in Constellation Energy and added income by selling call options, he says. He adds that he thinks the company’s intrinsic value is around $325 to $345 per share. It was recently trading around $284.

BWX Technologies Inc. (BWXT)

Rinaldi has taken a similar stock and call options strategy with this nuclear solutions company. He thinks the company has an intrinsic value around $225 to $230. Shares were recently trading above $227 during the stock market rally early April 8.

The company builds systems that power U.S. Navy submarines and aircraft carriers. Its commercial operations division manufactures and services nuclear power plants. It is also involved in radioisotopes for diagnostic and therapeutic products.

The company is also working on the next generation of nuclear power, in the form of small modular reactors and micro reactors. It states, “These innovative, compact reactors hold immense promise for addressing some of the world’s most pressing energy challenges, including the potential to deliver reliable, carbon-free power to remote communities, critical infrastructure and industrial sites, where traditional large-scale nuclear plants may be impractical or uneconomical.”

While BWXT is a tried-and-true nuclear company with large scale in hard-to-enter sectors, Oklo is a nuclear startup on the other end of the spectrum.

This nuclear fission company recently went public via a special-purpose acquisition company, or SPAC, merger. It has backing from artificial intelligence entrepreneur Sam Altman, with hopes that the company’s technology can power AI data centers.

But it’s still very much a startup and has a long way to go before it can provide profitability.

“We like Oklo since the market has realized it was extremely overpriced in the $140 per share area as a speculative investment,” Rinaldi says. “Now it is losing money, currently trades around $48 per share and may have a little more downside yet.”

NextEra Energy Inc. (NEE)

Investors looking for a large, stable play on the energy transition can consider this company, as NextEra regularly shows up in experts’ top picks for renewable energy stocks.

NextEra’s regulated utility segment engages primarily in the generation, transmission, distribution and sale of electric energy in Florida. Another segment produces electricity from renewable sources, including wind and solar. The company is also involved with green hydrogen, battery storage and nuclear plants.

While oil and natural gas companies can be volatile holdings because of fluctuations in the prices of those commodities, utilities are often considered defensive holdings because homes and businesses are going to need electricity regardless of what the economy is doing.