3 Oil Stocks to Start 2026: Values or Traps?

• (0:15) - Will 2026 Be A Big Year For The Oil Industry?
• (4:40) - Tracey’s Top Picks To Keep On Your Radar
• (21:50) - Episode Roundup: XOM, CVX, COP, SLB
•                 [email protected]

Welcome to Episode #470 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey went solo to talk about the oil stocks given the recent developments in Venezuela and the price of oil holding in the $50s, which is historically low.

Chevron, Exxon Mobil, and ConocoPhillips have all been producers in Venezuela in the past. Only Chevron still remains in the country. Will they be willing to go back in? What kind of guarantees will they ask for?

Should you buy the oil stocks now in anticipation of things to come?

Definition of a Value Stock Versus a Trap

There are a lot of stocks that appear cheap on a price-to-earnings (P/E) basis. There are also industries that are being ignored by Wall Street. Neither thing necessarily indicates a company is a “value.”

The earnings have been cut on the oil stocks since the price of oil began falling from the Ukraine/Russia War high in 2022. Earnings have been down on most oil stocks in 2023, 2024 and 2025.

Will they fall again in 2026?

A stock is a trap if it’s cheap but the earnings are expected to fall year-over-year. Investors want companies that are growing earnings. Of course, oil company earnings are predicated on the price of oil and, to some extent, natural gas. When it falls, earnings do too.

Are the oil stocks attractive to buy in 2026?

3 Oil Stocks in 2026: Values or Traps?

1. Exxon Mobil Corp. (XOM)

Exxon Mobil is one of the largest oil companies in the world. It explores and produces oil and natural gas globally. It also has refining, service stations and operates a chemical company.

Shares of Exxon Mobil are up 16% over the last year and are trading near all-time highs. Yet earnings are expected to fall 11.2% in 2025 while bouncing back just 1.7% in 2026. 4 earnings estimates have been cut for 2026 in the last 30 days, with just one raised.

Exxon Mobil isn’t cheap. It trades with a forward P/E of 17.4. It’s shareholder friendly and is paying a dividend yielding 3.4%.

Exxon Mobil has made a big investment in Guyana, the country next to Venezuela, the last few years.

Should Exxon Mobil be your choice for a play on oil in 2026?

2. Chevron Corp. (CVX)

Chevron Corp. is also one of the largest oil companies in the world. It also explores and produces oil and natural gas globally. It has refining and service stations.

Shares of Chevron are up 7.5% over the last year. Earnings are expected to be down 25% in 2025 and another 4.1% in 2026. Analysts are bearish for 2026. 2 estimates have been cut in the last 30 days for 2026.

It’s not cheap. Chevron trades with a forward P/E of 22.6. A P/E over 20 is considered expensive. You will get a juicy dividend for your patience, however. It’s yielding 4.3%.

Should Chevron, which is already in Venezuela, be your oil stock choice in 2026?

3. ConocoPhillips (COP)

ConocoPhillips is an independent oil and natural gas producer with operations in 13 countries. It differs from Exxon and Chevron in that it no longer operates in refining or distribution.

Shares of ConocoPhillips were down 2.1% over the last year. Earnings are expected to fall 18% in 2025 and another 15.3% in 2026. One estimate has been cut for 2026 in just the last week.

Like the others, ConocoPhillips isn’t cheap. It trades with a forward P/E of 18.4. You will get a dividend, which is yielding 3.4%.

ConocoPhillips got burned the last time it was in Venezuela. Should you make a bet it will be back there in 2026?

What Else Should You Know About the Oil Stocks in 2026?

Tune into this week’s podcast to find out.

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This article originally published on Zacks Investment Research (zacks.com).

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