Energy businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. They are also bound to benefit from a friendlier regulatory environment with the “American energy dominance” stance of the Trump administration, and this excitement has led to a six-month gain of 28.5% for the sector - higher than the S&P 500’s 10.9% return.
Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. With that said, here is one resilient energy stock at the top of our wish list and two we’re swiping left on.
Two Energy Stocks to Sell:
Antero Resources (AR)
Market Cap: $11.23 billion
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE: AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
Why Are We Hesitant About AR?
- Muted 5.6% annual revenue growth over the last five years shows its demand lagged behind its energy upstream and integrated energy peers
- Expenses have increased as a percentage of revenue over the last five years as its EBITDA margin fell by 5.1 percentage points
Antero Resources is trading at $36.45 per share, or 8.3x forward P/E. If you’re considering AR for your portfolio, see our FREE research report to learn more.
Green Plains (GPRE)
Market Cap: $1.13 billion
Operating one of North America's largest ethanol platforms with capacity to process 310 million bushels of corn annually, Green Plains (NASDAQ: GPRE) operates ten biorefineries that convert corn into ethanol for fuel, distillers grains for animal feed, and renewable corn oil.
Why Do We Think GPRE Will Underperform?
- Sales stagnated over the last five years and signal the need for new growth strategies
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 5.5%
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $16.25 per share, Green Plains trades at 9.8x forward P/E. To fully understand why you should be careful with GPRE, check out our full research report (it’s free).
One Energy Stock to Watch:
Noble Corporation (NE)
Market Cap: $7.52 billion
With origins dating back over a century to 1921, Noble Corporation (NYSE: NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas.
Why Is NE on Our Radar?
- Impressive 30.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
Noble Corporation’s stock price of $47.50 implies a valuation ratio of 38.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
