We recently published a list of 11 Best Performing Energy Stocks So Far In 2025. In this article, we are going to take a look at where Innovex International, Inc. (NYSE:INVX) stands against other best performing energy stocks so far in 2025.
The United States of America is currently producing more oil and gas than any other country ever. The country’s oil production has surged by almost 50% in the last ten years, reaching just over 13.45 million barrels per day in October 2024.
READ ALSO: 10 Best Liquefied Natural Gas (LNG) Stocks to Buy in 2025
That said, President Donald Trump’s tariffs on Canada and Mexico, due to take effect on Tuesday, will have serious consequences on the American economy which is highly dependent on imports of crude oil. Canada is the source of about 20% of oil used by Americans, while Canada and Mexico together account for 70% of US crude imports, so the upcoming tariffs could significantly raise gas prices for American consumers. Moreover, oil refiners in the Midwest depend heavily on Canadian crude and the said tariffs will force them to pay either more for their feedstock, or slash production, further squeezing an industry that already had a tough time last year.
President Trump wants to make America self-sufficient and independent when it comes to energy, but no matter how much oil the United States pumps, its refineries are configured to run heavier grades, such as those coming in from Mexico and Canada. Converting those refineries to process American light oil will require significant time and investments, making it an unlikely scenario.
The President has made repeated calls to American oil producers to ramp up their production, but it doesn’t seem to be going as planned, as companies appear reluctant to shell out the big bucks at a time when the global crude prices are in decline. The US Energy Information Administration stated in January that it expects Brent crude oil prices to fall 8% to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026.
Things are looking much better for the country’s natural gas industry though, which has witnessed a surge in demand due to a sharp uptick in LNG exports, coupled with the ongoing AI data center boom. According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by 2030, adding about 46 GW of new capacity – 20% higher than the gas capacity additions in the last five years. Moreover, growth is also expected to come from new LNG export facilities coming online soon, like Plaquemines LNG and Corpus Christi Stage 3, while the Golden Pass LNG project is also anticipated to begin operations by mid-2026. Having said that, Donald Trump has recently vowed to slap the EU with tariffs of 25%, and since the bloc remains the top destination for American LNG, the future of this industry isn’t clear either anymore.
The energy sector has outperformed the broader market so far this year, with gains of 1.31% against the general market’s surge of 0.41%. This comes after a disappointing 2024 when the energy sector lagged significantly behind gains of 25% by the wider market.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most YTD as of the close of February 28, 2025. The stocks are ranked according to their YTD gains.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Innovex International, Inc. (NYSE:INVX)
YTD Share Price Gains as of Feb. 28: 26.54%
Topping our list of the Best Performing Energy Stocks is Innovex International, Inc. (NYSE:INVX), a Houston-based company established in 2024 following the merger of Dril-Quip and Innovex Downhole Solutions.
Innovex International, Inc. (NYSE:INVX) had a strong Q4 2024, increasing its revenue by 65% QoQ to $251 million. The company also reported a net income of $32 million and an operating cash flow of $36 million during the quarter, allowing it to authorize a $100 million share buyback program. Key strategic moves during the quarter also included the acquisition of Downhole Well Solutions and SCF Machining Corp, aimed at further increasing margins and supply chain flexibility. Moreover, INVX has announced the intended divestiture of Dril-Quip’s 128-acre Eldridge facility, an important step to improve margins, efficiency, and returns on invested capital.
Innovex International, Inc. (NYSE:INVX) achieved its merger cost synergy target of $30 million in only five months after closing the merger and continues to focus on organic growth and expanding its market presence through strategic partnerships. Just last month, INVX announced the signing of a strategic frame agreement with SLB OneSubsea for the supply of subsea wellhead systems.
Overall, INVX ranks 1st on our list of best performing energy stocks so far in 2025. While we acknowledge the potential for INVX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
