U.S. energy stocks outperformed every other sector in the market in 2021 and 2022. That sets up a key test this year of the industry’s staying power. Not since 2010 has energy outperformed the broader market three years in a row.
Mizuho analyst Nitin Kumar expects fossil fuels to three-peat. Recent trends have been positive; despite a drop in oil prices, the stocks are holding up. Kumar initiated coverage on oil and gas with a generally positive outlook, along with some key advice for investors. His top stock picks, rated at Buy, include
Exxon
Mobil (ticker: XOM),
Diamondback Energy
(FANG), and
Coterra
(CTRA).
