For the past few years, energy stocks have been a consistently hot sector.
Renewable energy stocks power electric vehicles. In 2020 and 2021, EVs were one of the all-time hot sectors…
Oil stocks form the other part of the energy picture. They came back from 2020’s oil crash for their recent run…
Add in catalysts like geopolitics and Elon Musk tweets and you’ve got a heck of a sector! No one knows what the next stock to pop will be…
That’s why I’m keeping these stocks on my watchlist!
Table of Contents
- 1 The Case for Renewable Energy
- 2 Oil Is One of 2022’s Hottest Sectors
- 3 Why You Need to Keep a Watchlist
- 4 The Top 9 Energy Stocks to Watch
- 4.1 Halliburton Company (NYSE: HAL)
- 4.2 Cheniere Energy, Inc. (AMEX: LNG)
- 4.3 Indonesia Energy Corp Ltd (AMEX: INDO)
- 4.4 Plug Power Inc. (NASDAQ: PLUG)
- 4.5 Advent Technologies Holdings Inc. (NASDAQ: ADN)
- 4.6 Southwestern Energy Company (NYSE: SWN)
- 4.7 Imperial Petroleum Inc. (NASDAQ: IMPP)
- 4.8 Brookfield Renewable Partners LP (NYSE: BEP)
- 4.9 Fuel Cell Energy (Nasdaq: FCEL)
- 5 Conclusion
- 6 One Platform. One System. Every Tool
The Case for Renewable Energy
EV stocks were one of the hottest sectors of the last few years…
Guess what they run on? Renewable energy.
Renewable energy is a sector with monster potential. There’s a ton of hype, for sure. But some of that hype has been proven — which helps the sector stay hot.
I’d argue that the sector leader is Tesla Inc. (NASDAQ: TSLA). Tesla isn’t an energy stock itself…
But whenever it announces a deal with a new battery producer, the entire sector tends to run!
This phenomenon is called the sympathy play, and this sector sees more than its share. That’s because renewable energy is all about future potential.
That’s why a stock like Plug Power Inc (NASDAQ: PLUG) can have multi-week runs on news and hold onto some gains when the news doesn’t translate to profits.
Many traders see renewable energy as the future. If the Build Back Better Act makes it through the Senate, it will include more than $500 billion for clean energy.
And of course, Tesla’s still lighting up the market. Check out this video on the company’s prospects:
And with Musk buying 9% of Twitter shares, you can bet he’ll continue to make news.
Oil Is One of 2022’s Hottest Sectors
Oil had already staged a remarkable recovery from 2020’s oil crash…
Then Russia invaded Ukraine. Gas prices approached all-time highs and oil penny stocks dominated the market.
Look, this invasion is scary for everyone. My heart goes out to everyone who’s been affected by the war…
But for traders, fear creates opportunity. It’s the same as the vaccine plays of last year or 2020’s stay-at-home sector.
No one wishes for these disruptive global events. But we trade what the market gives us.
We can’t know what’s coming next. All we can depend on is more news coming our way…
A watchlist is the best way to prepare ourselves.
Why You Need to Keep a Watchlist
When Indonesia Energy Corp Ltd (AMEX: INDO) ran all the way to $87, smart traders were prepared.
INDO was already on their watchlists after trading 88 million shares on a float of under 2 million. The market comes down to supply and demand.
When 88 million shares trade in one day, you better believe there’s demand!
Keeping watchlists helps us be ready to take advantage of big moves. When you’re talking about 1,800% moves, there’s a lot of upside!
And we don’t lose anything when a stock like INDO fails. We’re watching and waiting for the next opportunity.
Smart traders don’t try to predict when or if that will happen. What we do is keep these stocks on our watchlists. That way we’re prepared for moves that might catch the rest of the market by surprise.
The Top 9 Energy Stocks to Watch
We’re covering our bases with this watchlist. Between world events and recent runners, anything can happen.
I’ll be watching these stocks when it does.
Halliburton Company (NYSE: HAL)
Halliburton leads StocksToTrade Advisory’s March newsletter…
Halliburton is famous for its political connections. Former CEO Dick Cheney was vice president under George W. Bush.
It also has a LOT of experience building energy infrastructure in former war zones. All of this puts it in a good position to help Ukraine rebuild after the war ends.
Even if this scenario doesn’t materialize, it’s still one of the biggest names in oil and gas. Large-cap oil stocks could take over sector momentum in the long term…
Share values have climbed more than 500% in the past two years. It’s had one of the cleanest long-term uptrends you’ll find across the entire market.
Cheniere Energy, Inc. (AMEX: LNG)
Let’s check in on Cheniere.
I covered this liquefied natural gas (LNG) company last year…
Since then, this large-cap stock is up more than 60%!
In 2016, this Texas-based company became the first American LNG exporter…
It didn’t enjoy the same March 7 run many oil stocks did. Its share price is too high to get pushed up by the same kind of speculation.
But it has room to grow. With Europe moving away from Russian natural gas, Cheniere might benefit.
It’s not tying its export hopes to Europe. In 2021, it started delivery on a 25-year supply contract with Taiwan worth $1 billion annually.
Indonesia Energy Corp Ltd (AMEX: INDO)
I have to leave a spot for one of March’s big winners!
INDO is a junk oil stock that turned into a sector leader when Russia invaded Ukraine. Why was that?
It isn’t because this small-cap company is going to supply Europe’s oil…
It’s the volume, same as always.
INDO traded 40 million shares or more five times in late February and early March. That means that most traders probably bought it sometime that day. Why hold onto a stock that went from $4.49 to $86.99 in less than a month?
Too many traders have no exit plan … or no plan at all. We call these traders ‘bag holders.’
They’re still waiting for INDO to crack $100. Lucky for us, INDO’s small float means there aren’t many of them in this stock.
I’m looking for INDO to break above the $36 level. But I won’t be too surprised if it doesn’t make it back there.
Plug Power Inc. (NASDAQ: PLUG)
We talked about PLUG before…
This hydrogen stock is the closest thing we have to a sector leader. We spotlighted it in our 2022 hydrogen stocks watchlist.
It looks to be in recovery from its early-year lows. And it’s still a front-runner in the green energy space. This could be valuable as Europe pivots away from Russian energy.
PLUG has proven that it doesn’t need major news to spike. Take a look at this April driver of its recent 20% run…
It signed a deal with Airbus (OTCPK: EADSY) to study hydrogen use in airplanes. This is pretty thin news. And it shows how ready the market is to buy this stock.
Advent Technologies Holdings Inc. (NASDAQ: ADN)
ADN is an early-stage fuel cell and energy infrastructure company. It lost nearly 80% of its value in the last year…
A recent agreement with Hyundai (OTCPK: HYMTF) was the reason for ADN’s gain.
StocksToTrade’s Breaking News Chat caught the move. Being on top of the news is essential for trading hype like this.
You know I’m skeptical of penny stock news…
That doesn’t mean you should stay away from big moves like this. All it means is that you should have a plan…
And keep stocks with proven potential on your watchlist!
Southwestern Energy Company (NYSE: SWN)
I covered this stock in my April watchlist…
This isn’t one of the junky oil stocks that ran in late February and early March.
What caused its recent run? The March 25 news that the U.S. would supply 15 billion cubic meters of liquefied natural gas to the EU this year.
SWN is a contender to benefit from this deal, as is fellow watch Cheniere.
It’s had a great 2022, ratcheting up 100% so far. This latest spike has been dramatic, but this stock has held onto big gains before…
I’ll be watching for news that could send this stock up another leg!
Imperial Petroleum Inc. (NASDAQ: IMPP)
Speaking of junk oil stocks, let’s not forget IMPP’s rise and fall.
IMPP is a Greece-based shipping company specializing in oil and gas transportation.
It ran more than 2,000% in late February/early March on rampant speculation. Now it’s down in the $1s…
I suspect it will lead the sector when oil heats up again.
It’s on my recent oil penny stocks watchlist. That isn’t because I think IMPP will suddenly become profitable…
It’s because the stock has a proven history of running on insane volume.
In February and March, it averaged nearly 40 million shares traded. That doesn’t include its late-January run, where it closed nearly 100% up.
Brookfield Renewable Partners LP (NYSE: BEP)
I spotlighted Brookfield in 2021 when it was on a downswing…
This Canadian company has a giant portfolio of hydroelectric, wind, and solar assets. It’s one of the largest renewable energy companies in the world.
Brookfield gets a steady flow of cash through fixed purchase agreements. It’s on track to invest up to $1 billion per year through 2025 to expand its portfolio.
It’s up about 20% since announcing record 2021 earnings. With some news, it could climb again.
Fuel Cell Energy (Nasdaq: FCEL)
Let’s round out our watchlist with a big player in the hydrogen space. FCEL specializes in fuel cell power plants. It’s established over 50 worldwide!
FCEL has a track record of running with the EV sector. Its largest run was worth more than 1,000% over late 2020 and early 2021…
It’s had big swings since then. I like it for its future potential.
FCEL has partnerships with ExxonMobil and the U.S. Department of Energy. It also has an established presence in Europe, with power projects in the U.K. and Germany.
It can run on news in multiple sectors. I don’t think this one is ever coming off my watchlist.
I’ve given you my best ideas for the energy sector’s future…
Now comes the hard part: You need to put in the work. That means creating your own watchlists and getting to know the stocks on them.
There’s no guarantee any of these stocks will run in the future. Sometimes the best trade is no trade.
The work we have to do as traders is preparing for when opportunity strikes.
What do you think about my energy stock watchlist? Have you traded any of these stocks in the past? Let me know in the comments!