By Doug Busch
Energy stocks are starting to flourish, boosted by a string of solid earnings reports. Technical signals indicate a runway for further gains ahead.
It's been a bumpy ride for energy this year, because of overall soft crude prices and macroeconomic uncertainty. The widely followed Energy Select Sector SPDR exchange-traded fund has declined 3% so far in 2025, lagging far behind the S&P 500's nearly 9% gain. But recent winners in the sector look poised to keep climbing, thanks in part to strong financial results.
One of them is Chevron. No conversation about the energy sector is complete without mentioning the $272 billion oil major whose stock often pulls the entire group with it when it moves.
The stock, up 7% so far this year, is notably outperforming the Energy Select Sector SPDR ETF. It also boasts a 4.4% dividend yield while trading above both its 50- and 200-day moving average -- a feat rival Exxon Mobil cannot claim.
Technically, shares are flirting with a cup-with-handle pivot at $155.99, with potential to reach the $170 to $175 area by the end of the third quarter. Chevron was trading at $155.44 Friday.
In the oil equipment space, signs of a rebound are building. Baker Hughes surged nearly 12% on Wednesday following strong earnings and added another 2.3% on Thursday. But peer TechnipFMC is the one to watch. Its stock jumped 11.8% Thursday after the oil services company reported solid financial results -- marking its eighth straight positive earnings reaction.
The stock broke above a double bottom pivot at $35.96 and is now trading at 10-year highs, with its recent base finding support at $32.50 -- a former resistance level from January and April.
Watch for this stock, recently at $37.46 on Friday, to trade into the mid-$40s by the end of the third quarter.
Outside of oil and gas, coal stocks have been quietly grinding higher since the Trump administration took office last November, on hopes for deregulation. Though for investors, the industry remains under the radar.
Peabody Energy, a key coal mining name, is participating in the revival. While the stock has slumped 17% in 2025, it has surged 34% over the past month alone after rebounding off the $10 level in early April. The stock is now stalling just below its 200-day simple moving average. A push above that long-term trend line could provide the fuel for a move toward $20 later this quarter.
Peabody's peers are also shining, with Warrior Met Coal and Alpha Metallurgical up 40% and 37%, respectively, over the past month.
Peabody Energy changed hands at $17.08 on Friday.
Venture Global, a recent initial public offering in the liquefied natural gas industry, is starting to look attractive after a turbulent start.
The stock is down 42% from its Jan. 24 debut high above $25. It hit a low of $6.75 in April before attempting to stabilize near a prior breakout level above an inverse head-and-shoulders pattern.
Now on a nine-session losing streak and approaching support near $14, the setup offers a compelling risk/reward scenario for patient investors watching for a base to firm.
Venture Global was trading at $14.62 Friday.
Write to Doug Busch at douglas.busch@barrons.com
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July 25, 2025 12:20 ET (16:20 GMT)
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