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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.

Industry: Oil & Gas E&P
Ticker
Company
Zen Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
CDEV
CENTENNIAL RESOURCE DEVELOPMENT INC
73
86
57
89
60
TPL
TEXAS PACIFIC LAND CORP
68
14
100
78
90
60
PDCE
PDC ENERGY INC
67
86
43
78
90
40
VIST
VISTA ENERGY SAB DE CV
66
71
43
78
70
BSM
BLACK STONE MINERALS LP
66
43
100
78
50
60

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Use Zen Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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Oil and Gas Stocks FAQ

What are the best oil and gas stocks to buy right now in Aug 2022?

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

1. Centennial Resource Development (NASDAQ:CDEV)


Centennial Resource Development (NASDAQ:CDEV) is the top oil and gas stock with a Zen Score of 73, which is 32 points higher than the oil and gas industry average of 41. It passed 24 out of 33 due diligence checks and has strong fundamentals. Centennial Resource Development has seen its stock return 54.93% over the past year, overperforming other oil and gas stocks by 9 percentage points.

Centennial Resource Development has an average 1 year price target of $9.85, an upside of 42.55% from Centennial Resource Development's current stock price of $6.91.

Centennial Resource Development stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Centennial Resource Development, 37.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 12.5% have issued a Strong Sell.

2. Texas Pacific Land (NYSE:TPL)


Texas Pacific Land (NYSE:TPL) is the second best oil and gas stock with a Zen Score of 68, which is 27 points higher than the oil and gas industry average of 41. It passed 27 out of 38 due diligence checks and has strong fundamentals. Texas Pacific Land has seen its stock return 14.47% over the past year, underperforming other oil and gas stocks by -31 percentage points.

Texas Pacific Land has an average 1 year price target of $800.00, a downside of -51.77% from Texas Pacific Land's current stock price of $1,658.85.

Texas Pacific Land stock has a consensus Sell recommendation according to Wall Street analysts. Of the 1 analyst covering Texas Pacific Land, 0% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 100% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Pdc Energy (NASDAQ:PDCE)


Pdc Energy (NASDAQ:PDCE) is the third best oil and gas stock with a Zen Score of 67, which is 26 points higher than the oil and gas industry average of 41. It passed 27 out of 38 due diligence checks and has strong fundamentals. Pdc Energy has seen its stock return 57.23% over the past year, overperforming other oil and gas stocks by 12 percentage points.

Pdc Energy has an average 1 year price target of $87.80, an upside of 43.18% from Pdc Energy's current stock price of $61.32.

Pdc Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Pdc Energy, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the oil and gas stocks with highest dividends?

Out of 45 oil and gas stocks that have issued dividends in the past year, the 3 oil and gas stocks with the highest dividend yields are:

1. Berry (NASDAQ:BRY)


Berry (NASDAQ:BRY) has an annual dividend yield of 11.22%, which is 8 percentage points higher than the oil and gas industry average of 3.45%.

Berry's dividend payout ratio of 616.7% indicates that its high dividend yield might not be sustainable for the long-term.

2. Dorchester Minerals (NASDAQ:DMLP)


Dorchester Minerals (NASDAQ:DMLP) has an annual dividend yield of 10.19%, which is 7 percentage points higher than the oil and gas industry average of 3.45%. 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 98.6% indicates that its high dividend yield might not be sustainable for the long-term.

3. Kimbell Royalty Partners (NYSE:KRP)


Kimbell Royalty Partners (NYSE:KRP) has an annual dividend yield of 10.13%, which is 7 percentage points higher than the oil and gas industry average of 3.45%. Kimbell Royalty Partners's dividend payout is not stable, having dropped more than 10% three 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 122.2% indicates that its high dividend yield might not be sustainable for the long-term.

Why are oil and gas stocks down?

Oil and gas stocks were down -0.68% in the last day, and up 1.31% over the last week.

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

What are the most undervalued oil and gas stocks?

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

1. Transglobe Energy (NASDAQ:TGA)


Transglobe Energy (NASDAQ:TGA) is the most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Transglobe 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.

Transglobe Energy's stock has gained 98.17% in the past year. It has overperformed other stocks in the oil and gas industry by 52 percentage points.

2. Pdc Energy (NASDAQ:PDCE)


Pdc Energy (NASDAQ:PDCE) is the second most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Pdc 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.

Pdc Energy's stock has gained 57.23% in the past year. It has overperformed other stocks in the oil and gas industry by 12 percentage points.

3. Centennial Resource Development (NASDAQ:CDEV)


Centennial Resource Development (NASDAQ:CDEV) is the third most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Centennial Resource Development 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.

Centennial Resource Development's stock has gained 54.93% in the past year. It has overperformed other stocks in the oil and gas industry by 9 percentage points.

Are oil and gas stocks a good buy now?

51.47% of oil and gas stocks rated by analysts are a strong buy right now. On average, analysts expect oil and gas stocks to fall by -4.39% over the next year.

What is the average p/e ratio of the oil & gas e&p industry?

The average P/E ratio of the oil & gas e&p industry is 5.14x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.