3 Best Oil Stocks to Buy Now for 2026
Oil prices are exploding.
That bodes well for top-tier energy stocks.
Here are the 3 best oil stocks to buy now for 2026.
The US-led war on Iran has caused oil prices to surge. In fact, crude prices have reached 3+ year highs.
Holding energy stocks in 2026 has been a smart move. As a reminder, in our 2026 outlook we listed the energy sector as a top choice…which has been a great trade.
The S&P 500 Energy sector has climbed 26.49% YTD…easily outpacing all other sectors.
Now you may wonder if you should keep betting on the group given the huge outperformance.
Based on 2 evidence-based signal studies, you’ll want to keep overweighting the sector in the months ahead.
Not only that, we’ll provide 3 all-star stocks to keep your portfolio humming along in 2026.
Let’s drill down on the evidence.
2 Rare Bullish Signals for Oil Stocks
Middle East tensions affect energy prices.
The latest US battle with Iran sent the black gold to over $100 per barrel (WTI intra-day) … the highest in years.
As you’d imagine, energy stocks have followed this lift.
The State Street Energy Select Sector SPDR ETF (XLE) has been a runaway train, gaining +27.4% YTD:
We believe this rally is only just beginning. Ultra-rare signals are emerging.
Let’s unpack our first signal study.
On Friday March 6th, the United States Oil Fund LP (USO) surged 12.9%, the single largest daily jump since 2020:
Turns out, a climb of this magnitude is not only rare, but it’s a positive omen for energy equities.
By studying nearly 20-years of data, we were able to find a handful of instances where USO jumped 11%+ in a session…mostly occurring in 2020 during the COVID-19 crash and recovery.
Here’s how energy stocks (XLE ETF) performed after the USO ETF experienced a daily gain of 11%+:
- 1-month later XLE jumped 12.8%
- 3-months later XLE climbed 26.3%
- 6-months later XLE dropped 4.3%
- 12-months later XLE surged 56%
Notice at the 12-month mark there’s an 80% win-rate for XLE:
This study really surprised me. But it gets better.
Our 2nd signal study suggests even more gains for energy stocks.
In the 6-day period ending March 6th, the USO ETF surged an incredible 36.4%…its largest gain ever in that timespan:
I went back and found 14 discrete instances where USO jumped 20%+ in a 6-day span with periods including:
- January 2009
- Late 2015
- COVID-19 period of 2020
- And the high-inflationary period of 2022
If you are allergic to strong gains, look away now.
When the USO ETF gains 20%+ in 6-days, here’s how XLE performed going forward:
- Energy stocks gained 7.1% a month later
- XLE gained 6.2% 3-months later
- XLE fell 6.3% 6-months later
- XLE soared 37.2% 12-months later
Note the perfect score for the 12-month time frame:
With a powerful backdrop like this, a healthy energy equity allocation makes a lot of sense in 2026.
Let’s look at 3 names to own.
3 Best Oil Stocks to Buy Now for 2026
The number 1 best oil stock to buy is Exxon Mobile (XOM). The $630B oil & gas producer has seen massive accumulation this year as the shares have gained 26.8% YTD:
Note the 11 powerful inflows in 2026 alone. I find it very interesting that XOM was loved by institutions well ahead of the Middle East tensions:
With earnings expected to jump 19.3% next year to $8.55 per share, a forward P/E of 20.4 isn’t all that expensive.
Also, the forward yield of 2.7% is attractive considering the company has rewarded shareholders with strong growing payouts for decades.
Keep it simple and go with the flows!
The number 2 best oil stock to buy in 2026 is Chevron Corp. (CVX). This $380B oil major has seen its shares rally alongside a dozen institutional inflow signals.
The stock has gained a solid 27% in 2026:
Chevron also has a rich history of paying out nice dividends. The forward yield stands at a juicy 3.7%.
With earnings estimated to surge 28.6% next year to $9.26/share, the dividend-growth trend will likely continue.
As a reminder, dividend stocks outperform when volatility spikes. That’s yet another reason to keep long the energy patch.
The number 3 best oil stock to buy in 2026 is Diamondback Energy (FANG). This $50B market cap oil & gas player has been one of the top-ranked names in our data this year.
With a MAP Score of 82.8, FANG has made 4 appearances on our weekly Outlier 20 report. This list includes the 20 highest ranked stocks under institutional buy pressure.
If you want to outperform, you need to be on the right side of the Big Money.
The blue bars below to the right highlight the instances when FANG was a top-ranked buy idea in our data:
Like XOM and CVX, FANG sports a solid 2.4% dividend yield. With earnings slated to grow 28.7% next year to $13.11 per share, odds are this name will continue to elevate.
This highlights the power of tracking the biggest players on Wall Street.
If you missed the rally in energy stocks, don’t fret. We see more gas left in the tank in the months ahead.
Don’t get faked about by non-stop confusing headlines.
Following money flows keeps it simple…allowing you to hop on board the biggest trends EARLY.
And just recently for PRO subscribers, we added an amazing screener allowing you to search for our top-ranked stocks by sector, with over a dozen fundamental criteria and technical criteria.
This allows you to quickly find our best stocks loved by institutions…that’s how you stay ahead of the crowd!
Make 2026 your best year ever.
Our PRO subscription allows you to spot daily flows and access our weekly Outlier 20 report.
This is the report that has found EVERY SINGLE ONE of our Outlier stocks.
Professional money managers and RIAs looking for additional portfolio solutions including ETF flows & ranks and your own Portfolio Tracking tools, please reach out about our Advisor Solution and Emerging Advisor Program.
AND as a bonus, watch Jason Bodner and I discuss today’s post with additional insights. This was an awesome chat.
Lastly, we are hosting our first ever MoneyFlows Summit on March 27th at 10AM ET. We’ll be discussing our biggest bets for 2026 including top stock picks.
It’s virtual and free! Sign up here.
