Q1 earnings from energy companies and their Q2 forecasts could get a boost
Which energy companies should investors watch ahead of their earnings reports?
Oil prices have dropped sharply from their early March peak. is now trading around $86 a barrel, down from nearly $120 about six weeks ago. This fall has helped lift markets, with major stock indices hitting record highs last week.
Hopes that the Iran conflict may ease have supported sentiment, though the situation remains uncertain and can change quickly. Even after the drop, oil prices are still higher than before the conflict, when they were around $67 a barrel.
These relatively high prices continue to benefit energy companies, which are now preparing to report their first-quarter 2026 earnings.
Even if the war in Iran ends, energy prices will remain high for the long term
For investors looking at energy stocks, the key question is whether oil prices will stay high if a ceasefire actually holds.
Many analysts believe they will. Unlike the 2022 Ukraine crisis, where supply disruptions were partly managed through rerouting shipments and using reserves, the Iran conflict has highlighted a deeper issue. A large share of global oil passes through the Strait of Hormuz, making the market more vulnerable. Even if the Strait reopens fully, it may take time to restore confidence and bring disrupted production back online.
Earlier in March, the US Energy Information Administration also expected to stay above $95 in the near term before easing gradually. If prices remain elevated, energy companies could report strong first-quarter results and offer solid outlooks for the next quarter.
With this backdrop, we screened for US energy stocks that show strong valuations along with positive analyst sentiment.
Market: United States
Market cap over $5 billion
Sector: Energy
Earnings release within the next 30 days
Upside potential of over 20% based on InvestingPro Fair Value
Upside potential of over 20% based on the average analyst target
InvestingPro Health Score above 2.5/5
This research has identified 9 opportunities:
These US energy stocks appear undervalued, trading about 20% to nearly 40% below their estimated fair value. Analysts also see further upside, with price targets roughly 20% to 40% higher than current levels.They also offer steady income, with dividend yields ranging from about 2% to 4%.
Among these stocks are:
is one of the largest independent natural gas producers in North America, created through the merger of Chesapeake Energy and Southwestern Energy. The company stands to benefit from strong demand for LNG as global energy flows remain disrupted. Analysts expect Q1 2026 earnings per share of $3.67, up sharply from a year ago, with full-year EPS projected at $8.97. The stock also has strong backing, with most analysts rating it a buy.
strengthened its position with the merger of Civitas Resources earlier this year, expanding its presence in key US shale regions, especially the Permian Basin. With oil prices staying high, these low-cost assets are expected to support strong profitability. Earnings estimates for the current quarter have been revised higher in recent weeks, with results due in early May.
remains one of the largest global exploration and production players, with operations across multiple regions including North America, Europe, and Australia. This diversification helps balance risks from regional disruptions. Analysts expect steady earnings growth in 2026, supported by firm oil prices and cost discipline, with Q1 results due at the end of April. However, other stocks on the list show higher potential according to analysts and/or Fair Value!
Below are the key ways an InvestingPro subscription can enhance your stock market investing performance:
ProPicks AI: AI-managed stock picks every month, with several picks that have already taken off this month and in the long term.
Warren AI: Investing.com’s AI tool provides real-time market insights, advanced chart analysis, and personalized trading data to help traders make quick, data-driven decisions.
Fair Value: This feature aggregates 17 institutional-grade valuation models to cut through the noise and show you which stocks are overhyped, undervalued, or fairly priced.
1,200+ Financial Metrics at Your Fingertips: From debt ratios and profitability to analyst earnings revisions, you’ll have everything professional investors use to analyze stocks in one clean dashboard.
Institutional-Grade News & Market Insights: Stay ahead of market moves with exclusive headlines and data-driven analysis.
A Distraction-Free Research Experience: No pop-ups. No clutter. No ads. Just streamlined tools built for smart decision-making.
Vision AI: InvestingPro’s newest addition. It analyzes any asset’s chart with professional-grade market intelligence, identifying key timeframes, technical patterns, and indicators — then delivers a clear trading playbook with the levels, scenarios, and risks that matter most in under a minute.
Not a Pro member yet?
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such, it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.
