Energy Market Tensions: 3 Stocks to Watch for Upside in 2025

As geopolitical tensions escalate in the energy market, Exxon Mobil, Chevron, and Transocean are poised for potential upside. Exxon recently beat EPS expectations with a Q2 beat of $1.64, demonstrating resilience in its global reach and scale. Chevron also reported an EPS beat of $1.77, leading to revised valuations and ratings from analysts. These stocks offer investors better odds for growth in the coming months.

Geopolitical tensions in the energy market, particularly those involving Russia's oil supply, have sparked interest in certain stocks within the sector. As new measures aim to prevent countries from purchasing Russian oil, investors are closely watching stocks that could benefit from potential supply disruptions and price fluctuations. Among the notable names are Exxon Mobil, Chevron, and Transocean.

Exxon Mobil (NYSE: XOM) recently reported a strong earnings-per-share (EPS) beat, exceeding analysts' expectations by $0.17, with EPS of $1.64 for the second quarter. This performance demonstrates Exxon's resilience and global reach, even as oil prices remained at lower historical ranges. Trading at 85% of its 52-week high, Exxon offers room for the market to price in this earnings beat and any future growth potential [1].

Chevron (NYSE: CVX) also delivered an impressive EPS beat, with a reported $1.77 compared to the expected $1.58. This performance led to revised valuations and ratings from analysts. Chevron's stock, trading at 95% of its 52-week high, presents a favorable outlook for the coming months. Additionally, Chevron offers a high dividend yield of 4.43%, providing a steady income stream for investors [1].

Transocean (NYSE: RIG), a drilling equipment manufacturer and lessor, has shown significant potential for growth. Despite its volatility, the company's earnings have been beat, with a net EPS figure of eight cents forecast for the fourth quarter of 2025. This performance highlights the potential reward for investors, although it comes with higher risk due to Transocean's business model [2].

These stocks provide investors with better odds for growth in the coming months, given the current geopolitical tensions and potential supply disruptions in the energy market. As the second-quarter earnings season continues, investors should keep a close eye on these companies for further insights into their performance and potential.

References:
[1] https://www.marketbeat.com/stock-ideas/3-stocks-to-consider-as-tension-builds-in-energy-markets/
[2] https://finviz.com/news/138740/3-stocks-to-consider-as-tension-builds-in-energy-markets