Top 10 Oil and Gas Stocks To Buy According to Analysts

8. Shell plc (NYSE:SHEL)  

Average Analyst Price Target: $63.65

Upside Potential: 25.02%

Number of Hedge Fund Holders as of Q3: 48

Shell plc (NYSE:SHEL) is a global energy leader, engaged in the exploration, production, refining, and sale of oil, gas, chemicals, and renewable energy products. Its operations span both upstream and downstream markets, reinforcing its diverse energy portfolio.

On October 23, Shell Energy North America, a subsidiary of Shell plc (NYSE:SHEL), announced an agreement to acquire a 100% equity stake in RISEC Holdings, LLC. RISEC owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. This acquisition secures long-term supply and capacity offtake for Shell in the deregulated Independent System Operator New England (ISO New England) power market.

For the third quarter, Shell plc (NYSE:SHEL) reported adjusted earnings of $6 billion, surpassing analyst estimates of $5.3 billion, while free cash flow increased to $10.83 billion, compared to $7.5 billion in the same period last year. Meanwhile, cash capital expenditure fell to $4.95 billion, down from $5.65 billion in Q3 2023. The company also announced plans to repurchase $3.5 billion in shares over the next three months while maintaining its dividend at 34 cents per share.

Piper Sandler reaffirmed its Overweight rating on Shell plc (NYSE:SHEL) with a price target of $82 on October 8. The firm highlighted Shell’s strong operational performance, noting LNG liquefaction volumes of 7.5 million tonnes (MT), exceeding the 7.1 MT estimate. Additionally, Shell’s exploration and production (E&P) output remained steady sequentially, defying expectations of a decline.