How about grabbing that saved up money you have in the bank and putting it to good use; for example by finding some of the best energy stocks to invest in on the market? After all, the energy sector has been booming, and considering almost all production requires power, this industry is bound to produce great results indefinitely. Nevertheless, not all companies active in this sector are worth investing in and some might even hurt you in the long-run. Hence, it is important to know not only which stocks have growth potential, but also which firms have already been performing well.
Thanks to an expanding global economy, the S&P Energy index, where the best energy stocks to invest in are traded, has done almost twice as well as the stock market in general. In fact, the energy sector achieved the best overall performance, with utilities coming in second. Of course it comes as little surprise to see these two sectors side-by-side in terms of growth, especially since they are somewhat complementary industries and thus have vast similarities.
Those who have taken particular interest in publicly held companies and are looking to make an investment, should also check out one of our previous posts regarding the best airline stocks to invest in. Those who prefer to stick with the booming energy industry can naturally do so, but remember that diversification is always recommended when playing the stock market. Either way, the following list of the best energy stocks to invest in will provide you with several great options to choose from, making it that much easier for you to decide.
5. Phillips 66 Partners (NYSE:PSXP)
The people responsible for the creation of Phillips 66 Partners surely have much to be proud of. The amount of value unleashed from this company in the energy sector cannot be ignored and shares are up by 107% in 2014. If all goes according to plan, cash flow will be increased while assets are dropped, leading to a higher distribution per share, which is yet more great news for investors.
Phillips 66 Partners not enticing enough? We have four more of the best energy stocks to invest in on the following pages.
4. Pioneer Energy Services (NYSE:PES)
Although it grew by more than 120% in the first six months of 2014, few seem to have noticed Pioneer Energy Services. This firm has made it through the worst, taking a hard hit when natural gas prices dropped through the floor. Today, things have turned around, and the company’s rigs are always running at full speed. With little obstacles ahead, Pioneer has ample room for growth and shareholders could seriously benefit as a result.
3. Emerge Energy Services (NYSE:EMES)
Emerge Energy Services has found a niche for itself that has allowed it to grow a whopping 140% in 2014. The company manufactures sand that is later used in the gas and oil drilling process, a method that was developed by producers in order to raise the overall yield of shale wells. As the amount of sand added to the production process increases, so do Emerge’s operations, meaning it has quite a bright future ahead.
2. Ballard Power Systems (NASDAQ:BLDP)
Despite the fact that Ballard Power Systems is actually a fuel-cell producer and thus considered not to be an actual energy company, it has managed to land in the second spot on our list. Shares are up by 175% as shareholders are excited about the possibility of developing a radical new way of storing and generating energy. Although this company is promising, there are also large risks involved in investing, as it is yet far from profitable and still has much to prove.
1. Plug Power (NASDAQ:PLUG)
The best energy stock to invest in this year is probably Plug Power, which grew almost 200% in 2014. There has been a lot of hype around this firm, especially after a deal was closed with Wal-Mart for the sale of fuel-cells, meaning it must still live up to mounting expectations. Nevertheless, with a huge backlog of orders and sales rising constantly, Plug Power has more than enough of a fighting chance.
