The Best Energy Stocks To Buy Now - Part 3

After oil prices rose to multiyear highs in the mid-$70s per barrel earlier this summer, they have hung in the high $60s in August so far as the resurgent coronavirus spurs international travel restrictions while the number of people receiving vaccinations steadily rises. Oil prices are likely to remain stable while the global economy recovers amid the global pandemic, says Rob Thummel, senior portfolio manager at TortoiseEcofin in Overland Park, Kansas.

Taking into account the lack of clear direction for oil and the intensifying push to combat climate change, here are seven valuable energy stocks to add to a portfolio.

NRG Energy Inc. (NRG)

NRG Energy, the Houston-based electricity company, reported second-quarter net income of $1.1 billion, compared to a loss of $82 million during the first quarter, which included massive losses from the blackout in Texas caused by a February storm. The company offers a dividend yield of 3%, and its cash flow is expected to continue to improve since the setback in February, says Michael Underhill, chief investment officer of Capital Innovations in Pewaukee, Wisconsin. Over a longer period, the company's stock could trade closer to the consumer staples or telecom sectors than to traditional independent power producers, he says. The price target of the stock is $57, "which implies (significant) upside from the current price and is one of our largest holdings for our institutional client accounts," Underhill says. NRG finished the trading day Aug. 9 at $43.89.

Source: https://finance.yahoo.com/news/10-best-energy-stocks-buy-191617467.html