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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:

Permian Resources (NYSE:PR) is the top oil and gas stock with a Zen Score of 69, which is 27 points higher than the oil and gas industry average of 42. It passed 23 out of 33 due diligence checks and has strong fundamentals. Permian Resources has seen its stock return 7.98% over the past year, underperforming other oil and gas stocks by -21 percentage points.

Permian Resources has an average 1 year price target of $10.74, an upside of 68.92% from Permian Resources's current stock price of $6.36.

Permian Resources stock has a consensus Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Permian Resources, 55.56% have issued a Strong Buy rating, 11.11% have issued a Buy, 22.22% have issued a hold, while 0% have issued a Sell rating, and 11.11% have issued a Strong Sell.

Black Stone Minerals (NYSE:BSM) is the second best oil and gas stock with a Zen Score of 68, which is 26 points higher than the oil and gas industry average of 42. It passed 26 out of 38 due diligence checks and has strong fundamentals. Black Stone Minerals has seen its stock return 33.42% over the past year, overperforming other oil and gas stocks by 4 percentage points.

Black Stone Minerals has an average 1 year price target of $20.00, an upside of 34.68% from Black Stone Minerals's current stock price of $14.85.

Black Stone Minerals stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Black Stone Minerals, 75% have issued a Strong Buy rating, 0% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Texas Pacific Land (NYSE:TPL) is the third best oil and gas stock with a Zen Score of 68, which is 26 points higher than the oil and gas industry average of 42. It passed 27 out of 38 due diligence checks and has strong fundamentals. Texas Pacific Land has seen its stock return 25.49% over the past year, underperforming other oil and gas stocks by -4 percentage points.

Texas Pacific Land has an average 1 year price target of $800.00, a downside of -51.23% from Texas Pacific Land's current stock price of $1,640.19.

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.

Out of 47 oil and gas stocks that have issued dividends in the past year, the 3 oil and gas stocks with the highest dividend yields are:

Berry (NASDAQ:BRY) has an annual dividend yield of 12.6%, which is 8 percentage points higher than the oil and gas industry average of 4.3%.

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

Dorchester Minerals (NASDAQ:DMLP) has an annual dividend yield of 12.21%, which is 8 percentage points higher than the oil and gas industry average of 4.3%. 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.

Pioneer Natural Resources Co (NYSE:PXD) has an annual dividend yield of 11.45%, which is 7 percentage points higher than the oil and gas industry average of 4.3%. Pioneer Natural Resources Co's dividend payout is not stable, having dropped more than 10% two 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 66.2% indicates that its high dividend yield is sustainable for the long-term.

Oil and gas stocks were down -7.76% in the last day, and down -10.59% over the last week. Kosmos Energy was the among the top losers in the oil & gas e&p industry, dropping -13.38% yesterday.

Shares of several oil & gas companies are trading lower amid strength in the dollar and increased fears of an economic slowdown as investors continue to assess Wednesday's Fed commentary and 75 bps rate hike.

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

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 43 points higher than the oil and gas industry average of 43. It passed 6 out of 7 valuation due diligence checks.

Transglobe Energy's stock has gained 27.05% in the past year. It has underperformed other stocks in the oil and gas industry by -2 percentage points.

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 43 points higher than the oil and gas industry average of 43. It passed 6 out of 7 valuation due diligence checks.

Pdc Energy's stock has gained 14.84% in the past year. It has underperformed other stocks in the oil and gas industry by -14 percentage points.

Vista Energy Sab De Cv (NYSE:VIST) is the third most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Vista Energy Sab De Cv has a valuation score of 71, which is 28 points higher than the oil and gas industry average of 43. It passed 5 out of 7 valuation due diligence checks.

Vista Energy Sab De Cv's stock has gained 94.55% in the past year. It has overperformed other stocks in the oil and gas industry by 65 percentage points.