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Top 6 Energy Stocks to Trade in 2024

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Written by Timothy Sykes
Updated 1/29/2024 10 min read

The energy sector is what makes the economy go. So it makes sense that the sector takes a hit when the economy isn’t moving as swiftly.

However, there’s more to these stocks than the gas — or lithium batteries and electricity — you put in your car. Natural gas is used to make ammonia, which is one of the main ingredients in plant fertilizer. Hydrogen may be the fuel of the future, or it may be a short-lived trend. Wind and geothermal energy are looming wild cards — and government legislation can turn them into the next hot thing!

Energy stocks include all of the following, as well as electric utility companies:

The energy stock sector is sometimes called a ‘sensitive’ sector. Some energy stocks, like oil, are cyclical, which means that their value tends to fall when interest rates are up and the economy slows down. Other energy stocks, like electric utilities, are defensive, which means they’re resistant to economic turbulence and higher interest rates.

So stock analysts split the baby and call this sector sensitive… But really, it’s weirder than that. In 2023, oil prices fell in spite of heightened demand, and the Saudi Minister of Energy said it was due to the futures market falling into “a self-perpetuating vicious circle of very thin liquidity and extreme volatility.”

For traders, volatility is good, but low liquidity is bad. That translates to a sector that’s worth watching, and sometimes trading — carefully!

The Best Energy Stocks in February 2024 — Sector Leaders

Let’s unpack what the ‘best energy stocks’ should mean to you. I definitely don’t mean that they’re the best stocks to invest in.

I don’t think that any stocks are ‘safe.’ What I look for is volatility, and the best energy stocks have plenty of it!

When you’re learning about a sector, pay attention to the sector leaders. Their charts can tell you a lot about the health of the sector.

When they’re running, their momentum can affect their entire sector and create the sympathy plays I like to trade!

While we’ve highlighted some of the best energy stocks to trade in 2023, it’s important to remember that the stock market is vast and dynamic. There are numerous other top-performing stocks across various sectors that could potentially offer lucrative trading opportunities. Diversifying your portfolio by investing in different sectors can help mitigate risk and increase your chances of earning profits. If you’re interested in exploring more top-performing stocks, here’s a list of 10 top stocks to invest in.

Exxon Mobil Corp. [NYSE: XOM]

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 2.4 million barrels of liquids and 8.3 billion cubic feet of natural gas per day. At the end of 2022, reserves were 17.7 billion barrels of oil equivalent, 65% of which were liquids. The company is the world’s largest refiner with a total global refining capacity of 4.6 million barrels of oil per day and is one of the world’s largest manufacturers of commodity and specialty chemicals.

Linde plc [NYSE: LIN]

Linde is the largest industrial gas supplier in the world, with operations in over 100 countries. The firm’s main products are atmospheric gases (including oxygen, nitrogen, and argon) and process gases (including hydrogen, carbon dioxide, and helium), as well as equipment used in industrial gas production. Linde serves a wide variety of end markets, including chemicals, manufacturing, healthcare, and steelmaking. Linde generated approximately $33 billion in revenue and $5.4 billion in GAAP operating profit in 2022.

Tesla Inc. [NASDAQ: TSLA]

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles.

While Tesla is itself a consumer discretionary stock, it’s effectively the sector leader for the lithium-ion rechargeable battery sector. When Tesla has battery news, the entire sector tends to run.

The Best Energy Penny Stocks in February 2024

The best energy penny stocks are constantly changing. Most of these companies won’t become the next Apple. I’m keeping them on watch to see if they match my preferred setups.

NOTE: I have NO intention of trading these stocks unless they suit my favorite setups. This is only a watchlist.

To find the best energy penny stocks requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my stock watchlists.

Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!

These are the penny stocks I’m watching in February 2024:

Tellurian Inc. [AMEX: TELL]

Tellurian Inc is a U.S-based independent oil and gas exploration and production company. It is developing a portfolio of natural gas production, LNG marketing, and infrastructure assets that includes an LNG terminal facility and related pipelines. The company generates maximum revenue from Natural gas sales.

Baytex Energy Corp [NYSE: BTE]

Baytex Energy Corp is an oil and gas company. Geographically, the group operates in Canada and the United States. The company derives a majority of revenue from Canada. Its Canada segment includes the exploration, development, and production of crude oil and natural gas in Western Canada.

W&T Offshore Inc. [NYSE: WTI]

W&T Offshore Inc is an oil and gas exploration and production company. The company’s exploration operations are focused in the Gulf of Mexico, where it drills for oil and gas. The company engages in both deepwater drilling and shallow-water shelf drilling. W&T Offshore extracts crude oil, natural gas, and natural gas liquids, which are then sold directly at the wellhead. Overall, crude oil accounts for the majority of the company’s revenue, with natural gas accounting for a much smaller portion.

How To Trade Energy Stocks

Learning how to trade energy stocks starts with your education. You need to learn what penny stocks are, how they work, and how to identify their patterns.

My FREE penny stock trading guide is a good start.

From there, if you want to take it to the next level, consider joining my Trading Challenge.

Before diving into the world of energy stocks, it’s crucial to understand the different types of stocks that exist in the market. Each type comes with its own set of characteristics, risks, and potential rewards. From blue-chip stocks to growth stocks, from dividend stocks to penny stocks, the variety is vast.

Having a solid grasp of these differences can significantly enhance your trading strategy and decision-making process. To get a comprehensive understanding of the various types of stocks, check out this detailed guide on different types of stocks.

Once you’re ready to start trading, you need a few key things…

Choose the Right Broker

To trade stocks, you need a brokerage account. Your broker is the gateway between you and trades. Choose a good one … Do your research and check out this guide for more tips.

Check out this quick startup guide to choosing a broker:

Get a Powerful Stock Platform 

A stock screener can help you narrow down the many stocks available to trade. I use StocksToTrade, which can also help with the next item…

Build Your Watchlist

Before every trade, you need to perform a detailed stock analysis.

There are two key types of stock analysis: fundamental analysis and technical analysis.

See how I build my watchlists every Sunday by signing up to my NO-COST weekly watchlist!

StocksToTrade can help you do both: it has awesome charting software and links to stock news, SEC filings, and even social media mentions.

With day trading penny stocks, technical analysis — reading the charts — matters more. Chart patterns show me how a stock’s performed over weeks, months, or even years. That helps me on the next step…

Follow Your Trading Plan

A trading plan is where you plot out entry and exit points, risk, and profit goals. Ideally, you base the plan on careful research and stick to it.

Choosing the right broker is just the first step in your trading journey. To be successful in the stock market, you need a solid day trading strategy. This strategy should encompass everything from risk management to identifying potential trading opportunities, from understanding market trends to knowing when to enter and exit a trade. A well-planned strategy can be the difference between success and failure in the volatile world of day trading.

If you’re looking to build or refine your day trading strategy, here’s a comprehensive guide on day trading strategies that can help you navigate the market more effectively.

Track Every Trade

You need to keep a METICULOUS trading journal. This is where the science of trading comes in.

How do you know what strategies work for you, and which don’t? You look at your trading journal.

How do you know when you’ve been overtrading and need a timeout? You look at your trading journal.

If you’re not careful, your emotions can determine your trading approach. Before long, you’ll be wearing the same socks that you were wearing on your “big day.” That isn’t trading anymore — that’s gambling.

Rinse and Repeat

Real trading is a job. It isn’t a boring, 9-5 job, but it’s still something that rewards consistency and discipline.

Follow these rules throughout your trading career. That will separate you from the constant flow of newbies trying to get rich quick, and protect you from the scammers trying to sell trading shortcuts.

Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (205) 851-0506 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”