Different types of stocks shine in different market environments. The biggest winners in today’s market are, unsurprisingly, energy stocks. Iran’s disruption of traffic through the critical Strait of Hormuz has changed the game for investors.
No one knows what will happen next. Perhaps a peaceful resolution to the military conflict with Iran will be reached. Maybe the crisis will be prolonged or even worsen, driving oil and gas prices significantly higher. Whatever happens, here are three energy stocks that are surging right now and worth buying for it’s too late.
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Energy security makes a comeback
After years of a heavy focus on transitioning from fossil fuels to renewable energy sources, energy security is making a comeback. As a result, several longtime energy leaders are sizzling hot right now.
ExxonMobil (XOM 0.96%) stands out in particular. Shares of the world’s second-largest energy company by market cap have soared year to date. So have shares of the company that ranks one spot behind ExxonMobil — Chevron (CVX 1.81%).
ExxonMobil
Today’s Change
(-0.96%) $-1.65
Current Price
$169.82
Key Data Points
Market Cap
$707B
Day’s Range
$165.99 – $174.37
52wk Range
$97.80 – $176.41
Volume
898
Avg Vol
23M
Gross Margin
21.56%
Dividend Yield
2.38%
These two oil and gas giants are birds of a feather in many respects. Both ExxonMobil and Chevron are generating strong free cash flow. Each company continues to repurchase shares. Both pay attractive dividends and have long records of dividend increases (43 consecutive years for ExxonMobil and 39 for Chevron).
Should the situation in the Middle East deteriorate, the demand for oil, gas, and petrochemicals produced by ExxonMobil and Chevron will undoubtedly skyrocket. However, these two stocks are well-positioned for success over the next decade and beyond, even if the crisis is resolved.
Today’s Change
(-1.81%) $-3.81
Current Price
$206.90
Key Data Points
Market Cap
$413B
Day’s Range
$201.96 – $213.10
52wk Range
$132.04 – $214.71
Volume
75K
Avg Vol
13M
Gross Margin
14.66%
Dividend Yield
3.34%
It’s a similar story with another quite different energy company. Enterprise Products Partners (EPD 3.17%) operates over 50,000 miles of pipeline in the U.S. that transport crude oil, natural gas liquids (NGLs), natural gas, petrochemicals, and other refined products. Although Enterprise isn’t nearly as sensitive to oil and gas price swings as ExxonMobil and Chevron, its stock has taken off in 2026 in large part because of the conflict with Iran.
Enterprise Products Partners offers investors an ultra-high distribution yield of 5.8%. This pipeline stock has increased its distribution for 27 consecutive years. In addition, Enterprise boasts a strong track record of resilience, generating consistent cash flow over the last two decades, a period that included several major challenges for the oil and gas industry.
Enterprise Products Partners
Today’s Change
(-3.17%) $-1.24
Current Price
$37.84
Key Data Points
Market Cap
$82B
Day’s Range
$37.61 – $39.05
52wk Range
$27.77 – $39.73
Volume
87
Avg Vol
4.7M
Gross Margin
12.86%
Dividend Yield
5.75%
Before it’s too late?
Will it really be too late for investors to buy ExxonMobil, Chevron, and Enterprise Products Partners if they don’t take action soon? Yes and no.
All three energy stocks have solid long-term prospects. In that sense, buying them at any time could pay off in the long run. However, I think we’re seeing a signification rotation from growth stocks to solid energy stocks. As more institutional money moves into energy to hedge against high commodity prices, the window for buying ExxonMobil, Chevron, and Enterprise at relatively attractive valuations will close.