You are using an older browser version. Please use a supported version for the best MSN experience.

10 Best Energy Stocks to Buy for 2020

US News & World Report -  Money Logo By Ellen Chang of US News & World Report - Money | Slide 1 of 12: Energy stocks took a beating this spring, but many rebounded from their lows. Several energy stocks are good additions since they remain undervalued but have low debt levels and a higher amount of free cash flow. As the economy reopened, consumption of gasoline and other crude oil products rose and crude oil prices followed suit. Lower crude oil prices are likely to stay for the rest of 2020, but volatility has diminished. The market has returned to something resembling "normal," but the market remains in oversupply that is exacerbated by a sluggish economy, says Charles Sizemore, chief investment officer of Sizemore Capital Management in Dallas. Energy stocks as a group are cheap and priced to outperform in an otherwise expensive market. "But this is still a sector in decline with a murky future," Sizemore says. "It looks a little like Big Tobacco 20 or 30 years ago."

After a rough spring, some energy stocks have rebounded.

Energy stocks took a beating this spring, but many rebounded from their lows. Several energy stocks are good additions since they remain undervalued but have low debt levels and a higher amount of free cash flow. As the economy reopened, consumption of gasoline and other crude oil products rose and crude oil prices followed suit. Lower crude oil prices are likely to stay for the rest of 2020, but volatility has diminished. The market has returned to something resembling "normal," but the market remains in oversupply that is exacerbated by a sluggish economy, says Charles Sizemore, chief investment officer of Sizemore Capital Management in Dallas. Energy stocks as a group are cheap and priced to outperform in an otherwise expensive market. "But this is still a sector in decline with a murky future," Sizemore says. "It looks a little like Big Tobacco 20 or 30 years ago."
© (Getty Images)

More from U.S. News & World Report

US News & World Report -  Money
US News & World Report - Money
image beaconimage beaconimage beacon