These 3 Energy Stocks May Outperform the S&P 500 in 2026

By Reuben Gregg Brewer – Apr 1, 2026 at 6:15PM ESTKey PointsDiamondback Energy and Devon Energy are U.S.-focused energy producers.Chevron is a globally diversified integrated energy giant.High oil prices should help Diamondback, Devon, and Chevron post strong earnings in 2026.The geopolitical conflict in the Middle East has disrupted global energy markets, driving up oil and natural gas prices. That will directly benefit energy companies like Diamondback Energy (FANG 3.62%), Devon Energy (DVN 3.38%), and Chevron (CVX 4.50%). They will probably be strong performers throughout 2026, given the nature of the oil market. Here's what you need to know. The market disruption will linger beyond the conflict It isn't uncommon for geopolitical conflicts to drive up energy prices. So, in some ways, what is transpiring in the Middle East has had a fairly predictable outcome on commodity markets. However, it is also important to understand that the end of the conflict won't instantly fix the supply disruptions that have impacted global energy prices. Image source: Getty Images. It could take months, or even years, for the energy infrastructure that has been damaged and, in some cases, destroyed to get back online. High oil prices could persist longer than investors expect. That's bad news for your wallet, but it is good news for energy companies like Diamondback, Devon, and Chevron. They are all likely to see elevated earnings throughout 2026. An aggressive play on high energy prices Diamondback Energy and Devon Energy are both onshore U.S. oil and natural gas producers. Their production assets aren't being impacted by the geopolitical conflict in the Middle East. That is very good news, since it means they can fully benefit from the rise in energy prices. ExpandNASDAQ: FANGDiamondback EnergyToday's Change(-3.62%) $-7.17Current Price$190.62Key Data PointsMarket Cap$56BDay's Range$187.34 - $195.7452wk Range$114.00 - $204.91Volume4.3MAvg Vol2.9MGross Margin35.16%Dividend Yield2.05% Diamondback increased oil production per share 9% in 2025. It expects to see another 4% increase in that metric in 2026. That sets the stage for robust earnings, noting that the price of West Texas Intermediate crude, the key U.S. oil benchmark, is rising along with global benchmark Brent Crude. ExpandNYSE: DVNDevon EnergyToday's Change(-3.38%) $-1.70Current Price$48.62Key Data PointsMarket Cap$31BDay's Range$47.65 - $49.8252wk Range$25.89 - $52.71Volume663KAvg Vol14MGross Margin23.24%Dividend Yield1.91% Devon Energy's story is a little different. While it will clearly benefit from rising oil and natural gas prices, it recently agreed to buy competitor Coterra Energy (CTRA 3.42%). The deal is expected to close in the second quarter of 2026 and was agreed to before the most dramatic increases in oil prices. The impact from the acquisition could be more beneficial than originally expected in 2026 when Devon updates its full-year outlook after the acquisition is complete. The problem with Diamondback and Devon is that they are pure play producers. That means their businesses will be fully exposed to energy price declines when they occur. Investors looking for a stock they can buy and hold in the energy patch should probably consider a company like Chevron. Chevron is built to survive the full energy cycle Chevron operates in the upstream (production), midstream (pipeline), and downstream (chemical and refining) segments of the energy industry. They each perform differently through the energy cycle, which can limit Chevron's participation in the upside when energy prices are rising. But it can also soften the blow when oil prices fall. For more conservative investors, Chevron will be a better energy choice. ExpandNYSE: CVXChevronToday's Change(-4.50%) $-9.32Current Price$197.58Key Data PointsMarket Cap$413BDay's Range$194.91 - $204.6452wk Range$132.04 - $214.71Volume1.2MAvg Vol13MGross Margin14.66%Dividend Yield3.34% That said, the real draw with Chevron is the company's reliable dividend. The yield is currently 3.3%, and the dividend has been increased annually for more than a quarter of a century. Given the rise in oil prices, Chevron is likely to have a very strong year in 2026. That said, even conservative dividend investors should feel comfortable owning the oil giant, since it is specifically designed to keep paying attractive dividends even after oil prices eventually return to normal. Three stocks set to benefit from high oil prices Given the rise in energy prices and the high likelihood that they will persist, Diamondback, Devon, and Chevron could have market-beating years in 2026. If you are looking to play the oil advance over the short term, the two onshore U.S. drillers could be a solid option. If you want to add a long-term energy position to your portfolio, Chevron will probably be the better choice.Read NextApr 1, 2026 •By Matt DiLallo7 Best ETFs to Buy in April 2026Apr 1, 2026 •By Lee SamahaHere's Why Chevron Stock Dipped Lower TodayApr 1, 2026 •By Keith Speights3 Energy Stocks Surging Right Now and Worth Buying Before It's Too LateApr 1, 2026 •By Sean WilliamsWarren Buffett Went Out With a Bang by Selling 50% of His Bank of America Stake and Piling Into One of the Hottest Oil Stocks on Wall StreetMar 31, 2026 •By Lee Samaha10 No-Brainer Stocks to Buy as Long as the Strait of Hormuz Is ClosedMar 31, 2026 •By Matt DiLalloOil Prices Are Near Multiyear Highs. Here's the Best Energy Stock to Buy With $1,000.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedChevronNYSE: CVX$197.41(-4.59%)-$9.49Devon EnergyNYSE: DVN$48.62(-3.38%)-$1.70Diamondback EnergyNASDAQ: FANG$190.65(-3.61%)-$7.14Coterra EnergyNYSE: CTRA$33.94(-3.42%)-$1.20*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.