Oil prices rose more than 4% in early trading on Monday as continued military exchanges between the U.S. and Iran fueled concerns about potential disruptions to shipping through the Strait of Hormuz. The U.S. and Iran exchanged fresh airstrikes over the weekend, escalating geopolitical tensions and pushing oil prices higher.
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At the time of writing, Brent crude (CM:BZ) was up 3.83% at $78.77 a barrel, while WTI crude (CM:CL) rose 3.42% to $74.14.
Using TipRanks’ Stock Comparison Tool, we identified 3 oil stocks with Strong Buy ratings that analysts believe are well positioned to benefit from higher oil prices, supported by strong balance sheets and disciplined capital spending. These companies also generate healthy free cash flows, enabling them to reward shareholders with dividends and stock buybacks.
Antero Resources (AR) – Antero Resources is a U.S. energy company that engages in exploration, development, and production of natural gas and natural gas liquids (NGLs). Antero Resources does not currently pay a dividend, as the management prefers to reinvest cash into the business and return capital through share repurchases. Antero is set to release its Q2 FY26 results on July 29. The Street expects Antero Resources to post adjusted earnings per share (EPS) of $0.89 on sales of $1.55 billion.
On TipRanks, AR has a Strong Buy consensus rating based on 10 Buys and three Hold ratings. The average Antero Resources price target of $49.69 implies 49.5% upside potential from current levels.
Devon Energy (DVN) – Devon Energy is an independent oil and natural gas producer that explores, develops, and produces energy from major shale basins, primarily in the Permian, Eagle Ford, Anadarko, and Williston regions. DVN stock carries a dividend yield of 2.64%. Devon is set to release its Q2 results on August 4. Adjusted EPS is forecasted to rise to $1.44 from $0.84 in the year-ago quarter. Sales are expected to jump 39.5% year-over-year to $5.97 billion.
On TipRanks, DVN has a Strong Buy consensus rating based on 19 Buys and two Hold ratings. The average Devon Energy price target of $60.20 implies nearly 42.6% upside potential from current levels.
Matador Resources (MTDR) – Matador Resources is an independent oil and natural gas producer focused on exploring, drilling, and producing crude oil, natural gas, and natural gas liquids. MTDR stock also pays a regular dividend and carries a yield of 3.14%. Matador Resources will release Q2 results on August 5, with adjusted EPS pegged at $2.21 and sales of $1.07 billion.
On TipRanks, MTDR has a Strong Buy consensus rating based on 10 Buys and two Hold ratings. The average Matador Resources price target of $71.90 implies 40% upside potential from current levels.