1 Energy Stock for Long-Term Investors and 2 We Avoid
Whether you see them or not, energy businesses play a crucial part in our daily activities, from powering our homes and businesses to powering our transportation and industries.Sure, they are at the whim of energy prices and other macroeconomic factors that influence capital spending (like interest rates and AI energy needs), but the industry has held its ground over the past six months as its 10.6% return was almost identical to the S&P 500.
Regardless of these results, investors should tread carefully. The diversity of companies in this space means that not all are created equal or well-positioned for the inescapable downturn. With that said, here is one energy stock boasting a durable advantage and two we’re passing on.
Two Energy Stocks to Sell:
Range Resources (RRC)
Market Cap: $9.59 billion
Focused almost entirely on the Marcellus Shale beneath Pennsylvania's forests and farmland, Range Resources (NYSE:RRC) drills for and produces natural gas, natural gas liquids, and oil from shale formations.
Why Are We Wary of RRC?
- Annual revenue growth of 8.6% over the last five years was below our standards for the energy upstream and integrated energy sector
- Efficiency has decreased over the last five years as its EBITDA margin fell by 5.1 percentage points
Range Resources’s stock price of $40.97 implies a valuation ratio of 10.8x forward P/E. Read our free research report to see why you should think twice about including RRC in your portfolio.
Tenaris (TEN)
Market Cap: $1.29 billion
Operating industrial facilities across the Americas, Europe, Middle East, and Asia, Tenaris (NYSE:TEN) manufactures seamless and welded steel pipes used in oil and gas drilling and transportation.
Why Is TEN Not Exciting?
- Annual revenue growth of 7.2% over the last five years was below our standards for the energy upstream and integrated energy sector
- Smaller revenue base of $854.6 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
At $42.78 per share, Tenaris trades at 1.5x trailing 12-month price-to-sales. If you’re considering TEN for your portfolio, see our FREE research report to learn more.
One Energy Stock to Watch:
Chevron (CVX)
Market Cap: $402.7 billion
Operating everything from deepwater drilling rigs to corner gas stations, Chevron (NYSE:CVX) explores for, produces, and transports crude oil and natural gas, then refines that crude oil into gasoline, diesel, and other petroleum products.
Why Do We Like CVX?
- Impressive 6.3% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Massive revenue base of $215.3 billion makes it a household name that influences purchasing decisions
- Free cash flow margin of 11.3% is higher than many in the industry, giving it breathing room and optionality
Chevron is trading at $205.25 per share, or 13.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.