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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:

TEXAS PACIFIC LAND (NYSE:TPL) is the top oil and gas stock with a Zen Score of 71, which is 33 points higher than the oil and gas industry average of 38. It passed 28 out of 38 due diligence checks and has strong fundamentals. TEXAS PACIFIC LAND has seen its stock lose -3.78% over the past year, underperforming other oil and gas stocks by -17 percentage points.

TEXAS PACIFIC LAND has an average 1 year price target of $800.00, a downside of -47.37% from TEXAS PACIFIC LAND's current stock price of $1,519.96.

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.

EOG RESOURCES (NYSE:EOG) is the second best oil and gas stock with a Zen Score of 69, which is 31 points higher than the oil and gas industry average of 38. It passed 26 out of 38 due diligence checks and has strong fundamentals. EOG RESOURCES has seen its stock return 28.46% over the past year, overperforming other oil and gas stocks by 15 percentage points.

EOG RESOURCES has an average 1 year price target of $141.58, an upside of 28.03% from EOG RESOURCES's current stock price of $110.59.

EOG RESOURCES stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering EOG RESOURCES, 53.33% have issued a Strong Buy rating, 13.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

BLACK STONE MINERALS (NYSE:BSM) is the third best oil and gas stock with a Zen Score of 65, which is 27 points higher than the oil and gas industry average of 38. It passed 24 out of 38 due diligence checks and has strong fundamentals. BLACK STONE MINERALS has seen its stock return 29.49% over the past year, overperforming other oil and gas stocks by 16 percentage points.

BLACK STONE MINERALS has an average 1 year price target of $19.00, an upside of 40.95% from BLACK STONE MINERALS's current stock price of $13.48.

BLACK STONE MINERALS stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering BLACK STONE MINERALS, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

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 9.91%, which is 7 percentage points higher than the oil and gas industry average of 3.32%. 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 410.8% indicates that its high dividend yield might not be sustainable for the long-term.

DORCHESTER MINERALS (NASDAQ:DMLP) has an annual dividend yield of 9.61%, which is 6 percentage points higher than the oil and gas industry average of 3.32%. DORCHESTER MINERALS's dividend payout is not stable, having dropped more than 10% ten 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 98.8% indicates that its high dividend yield might not be sustainable for the long-term.

OASIS PETROLEUM (NASDAQ:OAS) has an annual dividend yield of 9.36%, which is 6 percentage points higher than the oil and gas industry average of 3.32%.

OASIS PETROLEUM's dividend payout ratio of 20.8% indicates that its high dividend yield is sustainable for the long-term.

Oil and gas stocks were up 2.46% in the last day, and down -1.74% over the last week. DENBURY was the among the top gainers in the oil & gas e&p industry, gaining 9.83% yesterday.

Shares of energy companies are trading higher as oil prices gain. Concerns of tight supply continue to lift prices even as economic uncertainty weighs on demand outlook. Investors continue to assess the economic impact of Fed rate hikes.

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

EPSILON ENERGY (NASDAQ:EPSN) is the most undervalued oil and gas stock based on WallStreetZen's Valuation Score. EPSILON ENERGY has a valuation score of 86, which is 45 points higher than the oil and gas industry average of 41. It passed 6 out of 7 valuation due diligence checks.

EPSILON ENERGY's stock has gained 19.38% in the past year. It has overperformed other stocks in the oil and gas industry by 6 percentage points.

TRANSGLOBE ENERGY (NASDAQ:TGA) is the second most undervalued oil and gas stock based on WallStreetZen's Valuation Score. TRANSGLOBE ENERGY has a valuation score of 86, which is 45 points higher than the oil and gas industry average of 41. It passed 6 out of 7 valuation due diligence checks.

TRANSGLOBE ENERGY's stock has gained 61.11% in the past year. It has overperformed other stocks in the oil and gas industry by 47 percentage points.

DIAMONDBACK ENERGY (NASDAQ:FANG) is the third most undervalued oil and gas stock based on WallStreetZen's Valuation Score. DIAMONDBACK ENERGY has a valuation score of 86, which is 45 points higher than the oil and gas industry average of 41. It passed 6 out of 7 valuation due diligence checks.

DIAMONDBACK ENERGY's stock has gained 27% in the past year. It has overperformed other stocks in the oil and gas industry by 13 percentage points.