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Best Oil and Gas Stocks to Buy Now (2023)

Top oil and gas stocks in 2023 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:

Chord Energy (NASDAQ:CHRD) is the top oil and gas stock with a Zen Score of 57, which is 22 points higher than the oil and gas industry average of 35. It passed 22 out of 38 due diligence checks and has strong fundamentals. Chord Energy has seen its stock return 19.55% over the past year, overperforming other oil and gas stocks by 37 percentage points.

Chord Energy has an average 1 year price target of $194.43, an upside of 23.03% from Chord Energy's current stock price of $158.04.

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

Civitas Resources (NYSE:CIVI) is the second best oil and gas stock with a Zen Score of 56, which is 21 points higher than the oil and gas industry average of 35. It passed 21 out of 38 due diligence checks and has strong fundamentals. Civitas Resources has seen its stock return 22.45% over the past year, overperforming other oil and gas stocks by 39 percentage points.

Civitas Resources has an average 1 year price target of $92.60, an upside of 34.11% from Civitas Resources's current stock price of $69.05.

Civitas Resources stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Civitas Resources, 60% have issued a Strong Buy rating, 20% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Comstock Resources (NYSE:CRK) is the third best oil and gas stock with a Zen Score of 56, which is 21 points higher than the oil and gas industry average of 35. It passed 21 out of 38 due diligence checks and has strong fundamentals. Comstock Resources has seen its stock lose -37% over the past year, underperforming other oil and gas stocks by -20 percentage points.

Comstock Resources has an average 1 year price target of $13.25, an upside of 49.04% from Comstock Resources's current stock price of $8.89.

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

Out of 50 oil and gas stocks that have issued dividends in the past year, the 3 oil and gas stocks with the highest dividend yields are:

Sandridge Energy (NYSE:SD) has an annual dividend yield of 15.74%, which is 12 percentage points higher than the oil and gas industry average of 3.83%.

Sandridge Energy's dividend payout ratio of 47.1% indicates that its high dividend yield is sustainable for the long-term.

Black Stone Minerals (NYSE:BSM) has an annual dividend yield of 11.66%, which is 8 percentage points higher than the oil and gas industry average of 3.83%. Black Stone Minerals's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Black Stone Minerals's dividend has shown consistent growth over the last 10 years.

Black Stone Minerals's dividend payout ratio of 89.7% indicates that its high dividend yield is sustainable for the long-term.

Kimbell Royalty Partners (NYSE:KRP) has an annual dividend yield of 11.63%, which is 8 percentage points higher than the oil and gas industry average of 3.83%. Kimbell Royalty Partners's dividend payout is not stable, having dropped more than 10% five 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 131.5% indicates that its high dividend yield might not be sustainable for the long-term.

Oil and gas stocks were up 1.51% in the last day, and down -7.07% 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:

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 44 points higher than the oil and gas industry average of 42. It passed 6 out of 7 valuation due diligence checks.

Epsilon Energy's stock has dropped -20.99% in the past year. It has underperformed other stocks in the oil and gas industry by -4 percentage points.

Diamondback Energy (NASDAQ:FANG) is the second most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Diamondback Energy has a valuation score of 86, which is 44 points higher than the oil and gas industry average of 42. It passed 6 out of 7 valuation due diligence checks.

Diamondback Energy's stock has gained 11.93% in the past year. It has overperformed other stocks in the oil and gas industry by 29 percentage points.

Chord Energy (NASDAQ:CHRD) is the third most undervalued oil and gas stock based on WallStreetZen's Valuation Score. Chord Energy has a valuation score of 86, which is 44 points higher than the oil and gas industry average of 42. It passed 6 out of 7 valuation due diligence checks.

Chord Energy's stock has gained 19.55% in the past year. It has overperformed other stocks in the oil and gas industry by 37 percentage points.