Think Oil Prices Will Continue to Rally? Consider Buying These 2 Top-Rated Energy Stocks

Choose your energy stocks wisely and you will make a pretty penny as the economy and society slowly return to at least a semblance of normalcy. However, choosing the right energy stocks during a potentially extended industry rally is easier said than done.

Below, we provide a look at two top-rated energy stocks worthy of your consideration as life gets back to normal. Those two stocks are PetroChina Company (PTR) and EOG Resources (EOG).

PTR’s Appeal

The first thing that stands out when analyzing PTR is its handsome dividend of 5.77%. The stock's forward P/E ratio is a bit high at 27.54 yet it shouldn't scare off prospective investors considering the oil industry's potentially lengthy rebound following a nightmarish 2020. Keep in mind, PTR's forward P/E ratio is somewhat high at the current moment as it is priced a mere $2 below its 52-week high of $41.20.

Though PTR had a 2020 price return of -32.79%, the stock has a year-to-date price return of 27.73%. The stock's one month price return is an impressive 22.36%. PTR's price return in the ensuing months could go even higher as people resume traveling, working from the office, shopping at brick-and-mortar stores and using fossil fuels to otherwise leave the house.

PTR POWR Ratings

PTR has an overall POWR Rating of B meaning it is a Buy. The stock also has B grades in the Sentiment, Value and Growth components. Investors who would like to learn how PTR fares in terms of Stability, Momentum and Quality can learn about those unique POWR Ratings components by clicking here.

Of the 54 publicly traded companies in the Foreign Oil & Gas space, PTR is ranked third. You can learn more about this industry by clicking here.

PTR According to the Analysts

The top analysts believe PTR's upward ascension is not over quite yet. If these experts are right, the stock has the potential to reach $45.48 at its ceiling. The average analyst price target for the stock is $41.76. The analysts have set somewhat of a metaphorical "floor" for the stock with a low target price of $37. However, if PTR reaches the average analyst target price, it will have increased by 18%.

EOG

EOG has a significantly lower forward P/E ratio of 16.16 compared to that of PTR. This reasonable forward P/E ratio is all the more appealing considering the fact that EOG currently trades a mere $7 away from its 52-week high of $77.15. However, EOG's dividend is significantly less than that of PTR, coming in at 2% on the nose.

EOG POWR Ratings

EOG has a B grade in the POWR Ratings, meaning it is a Buy. The stock has an A grade in the Momentum component along with Bs in the Quality and Growth components. If you are wondering as to whether EOG's remaining POWR Ratings components such as Value and Stability grade out near or as well as its other components, you can find out by clicking here.

Of the 95 stocks in the Energy - Oil & Gas sector, EOG is ranked in the top 10, slotting in at number nine. You can learn more about the publicly traded companies in the Energy - Oil & Gas space by clicking here.

Analyst Expectations for EOG

The analysts are bullish on EOG, setting an average target price of $71.94. If EOG reaches this level, it will have increased by around 10%. The analysts' high target price for the stock is $99 while the low target price for the stock is $46. Of the 34 analysts who have issued recommendations for EOG, eight insist it is a Strong Buy, 17 consider it a Buy, nine view it as a Hold and none consider it a sell or Strong Sell.

Which is the Better Buy?

This is a difficult call to make considering the merits of each stock as detailed above. When in doubt, go with the stock with the better POWR Rating. Though EOG and PTR both have a B POWR Rating, EOG slightly edges out PTR in the Momentum and Quality components, making it a better buy at this point in time.