The energy sector has lagged behind the S&P 500 in the past year, but the International Energy Agency anticipates global oil demand will continue to grow in 2026. In addition, investors anticipate the Donald Trump administration will continue to support the energy sector with favorable policies.
[Sign up for stock news with our Invested newsletter.]
Stocks that are highly correlated to oil prices could generate big profits in 2025 and beyond, but that can be a double-edged sword, as many energy investors saw when oil prices collapsed in 2020. Here are six Bank of America buy-rated stocks with the highest correlation to WTI crude oil prices:
| Stock | Upside/Downside Potential From July 28 Close |
| Targa Resources Corp. (ticker: TRGP) | 31.4% |
| Schlumberger Ltd. (SLB) | 11.1% |
| Halliburton Co. (HAL) | 5.1% |
| Baker Hughes Co. (BKR) | -5.4% |
| Chevron Corp. (CVX) | 8.7% |
| Devon Energy Corp. (DVN) | 32.0% |
Targa Resources Corp. (TRGP)
Targa Resources is a U.S. midstream logistics company that specializes in onshore natural gas and natural gas liquids, or NGLs. Analyst Jean Ann Salisbury says investors are concerned that an increase in supply from the Organization of the Petroleum Exporting Countries and allied nations (OPEC+) will drag oil prices below $60 per barrel and weigh on NGL production growth in 2026. However, Salisbury says gas-to-oil ratio growth of 4% should support U.S. NGL production growth even if oil prices drop below $60. Bank of America has a “buy” rating and $220 price target for TRGP stock, which closed at $167.32 on July 28.
Schlumberger Ltd. (SLB)
SLB is one of the world’s leading oilfield services companies. Analyst Saurabh Pant says SLB’s international business positions the company well for long-term growth. Pant says the possibility of an oil market supply surplus in the second half of 2025 and 2026 has masked SLB’s solid underlying business performance. In fact, he says SLB’s stock is currently trading at only about a 10% premium to its trough valuation during the pandemic, when oil prices briefly dropped below zero, suggesting an overly pessimistic outlook. Bank of America has a “buy” rating and $40 price target for SLB stock, which closed at $36 on July 28.
[READ: 5 Best Nuclear Energy Stocks and ETFs to Buy Now]
Halliburton Co. (HAL)
Halliburton is a leading U.S. oilfield services company. Pant says the softer outlook for oil prices and oilfield services demand has weighed on Halliburton’s stock price, but the company has several longer-term bullish catalysts for investors willing to ride the next few volatile quarters. He says investors don’t fully appreciate Halliburton’s international business, its impressive free-cash-flow generation, its technology leadership in the North American market and its attractive valuation. Bank of America has a “buy” rating and $24 price target for HAL stock, which closed at $22.84 on July 28.
Baker Hughes Co. (BKR)
Baker Hughes is a U.S. oilfield services company that provides equipment and technology for the energy sector. The company is known as the global leader in liquefied natural gas liquefaction, or a process of cooling natural gas to its liquid form. Pant says Baker Hughes’ industrial and energy technology (IET) segment has performed well in 2025, including outperformance from its gas tech equipment and gas tech services businesses. He says the company’s consistent execution, cost efficiency efforts, IET growth opportunities, sizable free cash flow and capital return potential make it an excellent investment. Bank of America has a “buy” rating and $44 price target for BKR stock, which closed at $46.55 on July 28.
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical, refining and marketing businesses. Chevron shares have a 4.3% forward dividend yield, the highest on this list. In July, Chevron completed its acquisition of Hess, following nearly two years of regulatory uncertainty. Salisbury says the Hess acquisition gives Chevron control of one of the largest and lowest-cost global oil developments, with breakeven oil production costs under $35 per barrel. She says Chevron will also gain about 500,000 barrels per day in additional production. Bank of America has a “buy” rating and $170 price target for CVX stock, which closed at $156.28 on July 28.
Devon Energy Corp. (DVN)
Devon Energy is one of the largest U.S. independent oil and gas exploration and production companies. Analyst Kalei Akamine says Devon’s ability to maintain production in early 2025, when slumping oil prices forced other companies to cut production, is a sign of relative strength for Devon, especially in the Rockies region. The company has also made multiple strategic adjustments in 2025, such as divesting two real estate properties and its stake in the Matterhorn pipeline. Akamine says Devon is currently his top oil stock pick. Bank of America has a “buy” rating and $45 price target for DVN stock, which closed at $34.09 on July 28.
More from U.S. News
7 Best Pharmaceutical Stocks to Buy for Income
8 Top Nancy Pelosi Stocks to Buy
6 Best Cheap Dividend Stocks to Buy Under $10
6 Oil Stocks to Buy Closely Tied to Crude Prices originally appeared on usnews.com
Update 07/29/25: This story was published at an earlier date and has been updated with new information.
