Energy stocks can be hot and cold, but when they’re hot, they can move as fast as any tech stock. And when oil prices spike or geopolitical tensions rise as prices become so unstable and traders dive into action, it’s a popular sector.
Because of its volatility, the list of best performances is not known which strains will work out in the future, but many of the best energy strains have remained “best variety” for many years. Energy companies may also attract one or two well-known investors, such as the legendary Warren Buffett, who has acquired shares in Occidental Petroleum in recent past.
Below are the best-performing energy stocks, including only energy stocks from the Energy Select Sector SPDR Fund ETF (XLE).
The highest energy stock as of June 2025
| Company and ticker symbol | Performance in 2025 |
|---|---|
| EQT Corp. (EQT) | 19.6% |
| Extend energy (exe) | 16.7% |
| Marathon Oil (MPC) | 15.2% |
| Williams Company (WMB) | 11.8% |
| Ballo Energy (VLO) | 5.2% |
| Child Morgan (KMI) | 2.3% |
| Texas Pacific Land Corporation (TPL) | 0.7% |
| Philips 66 (PSX) | -0.4% |
| Hes | -0.6% |
| Coterra Energy (CTRA) | -4.8% |
Data as of May 30, 2025.
Should I invest in the hottest energy stocks?
Investing in individual stocks, especially in the energy sector, is difficult. You need to understand not only the dynamics of the industry, but also the specific exposure each energy company has, including the quality of the production assets. For those with time and motivation, investing in individual stocks can be rewarding, but it is important to understand that energy stocks are the most unstable and likely to lead to bankruptcy.
However, even if you don’t have the time or motivation, you can invest in energy stocks with a little knowledge. Buying index funds based on other people, such as the energy industry and high-tech stocks, allows you to make a variety of bets. Index funds track specific stock collections, do not try to beat the market, and do not earn weighted average revenue from their holdings.
So, if you want to play the rise of energy stocks, consider investing in exchange sales funds (ETFs) or mutual funds that focus on that particular sector. Although not without risk, it offers the benefits of a diverse portfolio with potential benefits that energy stocks are well known for.
Diversification helps protect you from company-specific risks (such as bad management), but it doesn’t protect you from industry-specific risks (such as lowering oil prices). So, whether you’re investing in a company or capital, understand what factors contribute to your investment return.
Conclusion
Following the hottest stocks is a good way to track what the market likes right now. However, if you are investing in individual stocks or sector-based funds, it is important to analyze your business, understand how you will make money in the future, and understand that you will not invest through the rearview mirror. You’ll chase yesterday’s performer and miss tomorrow’s performer.
And even if it’s hot, you don’t have to buy anything you don’t like. As Buffett once said, “The stock market is a game without strikes. You don’t have to swing everything. You can wait for the pitch.”
-Bankrate’s Brian Baker contributed to updating this article.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors recommend that past investment products performance is not a guarantee of future price increases.