Top Energy Stocks to Monitor in May 2025

Discover the top-performing energy stocks from the last month that are shaping the sector's future.

The energy industry encompasses companies involved in oil and gas exploration, utility service consolidation, and the development and marketing of renewable energy solutions. This vast market is poised for expansion as global energy demand intensifies. However, the sector is undergoing a significant transformation, with many traditional energy firms adapting their strategies to embrace cleaner, sustainable energy alternatives.

Essential Insights

• Leading energy stocks for May 2025, based on 30-day performance, include Ramaco Resources Inc. (METC), Hallador Energy Co. (HNRG), and Warrior Met Coal Inc. (HCC).
• Overall, energy stocks experienced an approximate 11.7% decline in the past month.
• Energy stock prices often correlate closely with the fluctuating prices of energy commodities, which can result in notable volatility.

We have curated this list of top energy stocks for May 2025 by analyzing 30-day returns, alongside other criteria detailed in our ranking methodology below. All data is current as of April 24, 2025.

Understanding the Energy Sector

Energy stocks exhibited significant volatility in early 2025, initially surging after the U.S. presidential election before declining later in the quarter. The past month saw rapid price fluctuations driven by geopolitical tensions both domestically and internationally. Historically, energy stock valuations tend to mirror energy commodity prices. For instance, during the early stages of Russia's 2022 invasion of Ukraine, energy prices surged, resulting in gains for many sector companies.

Global production levels critically influence energy stock performance. U.S. oil output is projected to rise under the current administration, maintaining already elevated levels. Conversely, some OPEC+ nations have imposed production limits. Demand for energy products is expected to grow, propelled by increased consumption in high-demand sectors such as cloud computing and artificial intelligence.

Criteria for Selecting the Best Energy Stocks

Our evaluation included all energy companies listed on the Nasdaq and New York Stock Exchange. We filtered for firms with share prices above $5, daily trading volumes exceeding 100,000 shares, and market capitalizations of at least $300 million to focus on established industry players.

We then ranked these companies by their 30-day returns, highlighting only those with positive performance. Our selection excludes securities directly involved in energy commodity trading.

Note that some companies in our list lack a P/E ratio, often due to recent financial losses that preclude calculation. Only seven stocks met the positive return criteria over the trailing month.

Pros and Cons of Investing in Energy Stocks

The energy sector represents a massive and expanding market, valued globally at approximately $6 trillion. Its diverse landscape offers investors multiple avenues, including production, transportation, distribution, and storage of energy. The sector also spans traditional fossil fuels and emerging renewable technologies, providing a broad spectrum of investment opportunities.

Growing global energy demand is expected to drive market expansion. The United Nations projects $2.4 trillion in annual investments over the next decade to fulfill the Paris Climate Agreement objectives. Renewable energy adoption is accelerating worldwide, enhancing the variety of sustainable investment options.

However, the sector carries inherent risks. Energy companies are highly sensitive to commodity price swings, which can lead to significant stock price volatility. The complexity of the global energy market poses challenges for investors aiming to identify resilient stocks.

Moreover, many energy firms have environmental footprints that may conflict with ESG investment criteria, limiting options for socially responsible investors.

While the stocks featured here have shown strong recent performance, it is crucial to remember that historical gains do not guarantee future results.

Conclusion

The energy sector comprises a wide range of companies involved in hydrocarbons, renewables, utilities, and more. Their stock prices are often influenced by oil and energy commodity price movements, which can lead to volatility. Nonetheless, the sector’s vast scale and anticipated growth make it an attractive area for investors seeking exposure to both traditional and innovative energy markets.

The views and analyses presented are for informational purposes only and do not constitute investment advice. As of this article's publication, the author holds no positions in the mentioned securities.

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