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Best Oil and Gas Stocks to Buy Now (2022)

Top oil and gas stocks in 2022 ranked by overall Zen Score. See the best oil and gas stocks to buy now, according to analyst forecasts for the oil & gas e&p industry.

According to Zen Score, the 3 best oil stocks to buy right now are:

Magnolia Oil & Gas (NYSE:MGY) is the top oil and gas stock with a Zen Score of 61, which is 22 points higher than the oil and gas industry average of 39. It passed 24 out of 38 due diligence checks and has strong fundamentals. Magnolia Oil & Gas has seen its stock return 38.7% over the past year, underperforming other oil and gas stocks by -33 percentage points.

Magnolia Oil & Gas has an average 1 year price target of $30.57, an upside of 18.63% from Magnolia Oil & Gas's current stock price of $25.77.

Magnolia Oil & Gas stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Magnolia Oil & Gas, 71.43% have issued a Strong Buy rating, 0% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Epsilon Energy (NASDAQ:EPSN) is the second best oil and gas stock with a Zen Score of 60, which is 21 points higher than the oil and gas industry average of 39. It passed 23 out of 38 due diligence checks and has strong fundamentals. Epsilon Energy has seen its stock return 33.46% over the past year, underperforming other oil and gas stocks by -39 percentage points.

Mexco Energy (NYSEMKT:MXC) is the third best oil and gas stock with a Zen Score of 60, which is 21 points higher than the oil and gas industry average of 39. It passed 19 out of 33 due diligence checks and has strong fundamentals. Mexco Energy has seen its stock return 59.82% over the past year, underperforming other oil and gas stocks by -12 percentage points.

Out of 46 oil and gas stocks that have issued dividends in the past year, the 3 oil and gas stocks with the highest dividend yields are:

Kimbell Royalty Partners (NYSE:KRP) has an annual dividend yield of 13.62%, which is 10 percentage points higher than the oil and gas industry average of 3.92%. Kimbell Royalty Partners's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Kimbell Royalty Partners's dividend has shown consistent growth over the last 10 years.

Kimbell Royalty Partners's dividend payout ratio of 84.8% indicates that its high dividend yield is sustainable for the long-term.

Dorchester Minerals (NASDAQ:DMLP) has an annual dividend yield of 11.72%, which is 8 percentage points higher than the oil and gas industry average of 3.92%. Dorchester Minerals's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Dorchester Minerals's dividend has shown consistent growth over the last 10 years.

Dorchester Minerals's dividend payout ratio of 106% indicates that its high dividend yield might not be sustainable for the long-term.

Pioneer Natural Resources Co (NYSE:PXD) has an annual dividend yield of 10.89%, which is 7 percentage points higher than the oil and gas industry average of 3.92%. Pioneer Natural Resources Co's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Pioneer Natural Resources Co's dividend has shown consistent growth over the last 10 years.

Pioneer Natural Resources Co's dividend payout ratio of 79.2% indicates that its high dividend yield is sustainable for the long-term.

Oil and gas stocks were up 0.72% in the last day, and down -1.46% over the last week.

We couldn't find a catalyst for why oil and gas stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued oil and gas stocks right now are:

Berry (NASDAQ:BRY) is the most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Berry has a valuation score of 86, which is 46 points higher than the oil and gas industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Berry's stock has gained 6.57% in the past year. It has underperformed other stocks in the oil and gas industry by -66 percentage points.

Epsilon Energy (NASDAQ:EPSN) is the second most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Epsilon Energy has a valuation score of 86, which is 46 points higher than the oil and gas industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Epsilon Energy's stock has gained 33.46% in the past year. It has underperformed other stocks in the oil and gas industry by -39 percentage points.

Primeenergy Resources (NASDAQ:PNRG) is the third most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Primeenergy Resources has a valuation score of 86, which is 46 points higher than the oil and gas industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Primeenergy Resources's stock has gained 28.96% in the past year. It has underperformed other stocks in the oil and gas industry by -43 percentage points.