Are Sub-$10 Energy Stocks Attractive With Oil Near $60?

Oil prices have hovered near the $60-per-barrel level in recent months as oversupply concerns, rising inventories and easing geopolitical tensions have capped upside momentum. WTI crude has slipped below $60 at times, keeping pressure on producer economics and investor sentiment across the energy space. Against this backdrop, some investors are watching low-priced energy stocks for selective opportunities. Names such as W&T Offshore WTI, RPC Inc. RES and Oil States International OIS stand out as sub-$10 stocks tied to different parts of the energy value chain that could benefit if conditions stabilize or improve.

Pressure on Producer Margins at Current Prices

Oil’s recent price action reflects a market caught between supply growth and modest demand expansion. The International Energy Agency (IEA) projects global oil demand growth of 930,000 barrels per day in 2026, but supply is expected to rise faster, creating a sizable surplus. Inventories have continued to build, weighing on prices even as short-term disruptions in Kazakhstan and Venezuela briefly offered support.

Benchmark crude prices remain well below levels seen a year ago, leaving many U.S. independent producers operating close to breakeven. Sustained sub-$60 pricing compresses margins, limits drilling activity and heightens financial strain, particularly for smaller operators with higher costs or shorter reserve lives. As a result, equity performance across the sector has remained uneven and volatile.

Distinguishing Temporary Weakness From Structural Risk

Recent price weakness has been driven largely by oversupply and higher inventories, but not all of that pressure is for the long term. The IEA has suggested that fears of a huge oil glut may be exaggerated, and demand forecasts have been raised as global growth steadies after last year’s tariff disruptions. The result is a mixed backdrop, where short-term cycles play out alongside longer-term uncertainty.

For investors, the challenge is separating companies facing temporary pricing headwinds from those with deeper business risks. Balance sheet strength, asset quality and operational flexibility become more important when commodity prices linger near breakeven levels.

Diversification Appeal and Volatility Trade-Offs

Cheap energy stocks under $10 can improve accessibility and allow investors to diversify exposure across producers, service providers and equipment suppliers without committing large amounts of capital to a single position. However, lower share prices often come with amplified volatility. During downturns, these stocks can decline sharply, particularly when oil prices weaken or capital spending slows.

A disciplined approach focuses less on share price and more on financial resilience, industry positioning and sensitivity to oil price movements. Evaluating how companies manage costs, generate cash flow and navigate cycles can help investors approach sub-$10 energy stocks more prudently.

Against this backdrop, the following three stocks offer distinct business models and risk profiles tied to the current oil market landscape.

3 Stocks to Focus on

W&T Offshore: The company is an independent oil and natural gas producer with a long-standing presence in the Gulf of America. Public since 2005, W&T Offshore holds working interests in 50 offshore fields across federal and state waters and controls more than 600,000 gross acres. Its asset base features low-decline reservoirs, strong well productivity and substantial remaining reserves, which have helped the company generate positive cash flow for over 28 consecutive quarters.

Founded in 1983, W&T Offshore has grown through targeted acquisitions and disciplined development. This Zacks Rank #2 (Buy) company has completed roughly $2.7 billion in Gulf of America acquisitions since its IPO and maintains a drilling success rate near 90%, supported by deep technical expertise. With reserves of 248 million barrels of oil-equivalent and daily production of 35.6 thousand barrels of oil-equivalent in the third quarter of 2025, WTI continues to focus on cost reductions, reserve life extension and a steady pipeline of organic and acquired growth opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

W&T Offshore beat the Zacks Consensus Estimate for earnings in three of the last four quarters and met in the other, with the average being 27.1%. WTI, with a share price of just $1.92, has a market capitalization of $281 million.

RPC, Inc.: It is a U.S.-based oilfield services provider offering a wide portfolio of equipment and solutions to exploration and production companies. Its operations span pressure pumping, coiled tubing, downhole tools, wireline, and rental equipment, serving key domestic regions such as the Permian Basin, Appalachia and the Gulf Coast, with a selective international presence. The Zacks Rank #3 (Hold) company operates through subsidiaries like Cudd Energy Services, Thru Tubing Solutions, Pintail Completions, and Patterson Services.

Known for its disciplined financial approach, RPC carries a debt-free balance sheet and has consistently returned excess free cash to its shareholders. The firm has steadily expanded its service mix, most recently through the acquisition of Pintail, adding wireline capabilities. With a track record of resilience in a cyclical industry, RPC leverages diversification and capital discipline to support customers while driving long-term value creation.

RES shares trade for less than $7 as of this writing. An incredible bargain for investors, the Zacks Consensus Estimate for 2026 revenues of RES indicates 6.4% growth. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up from 20 cents per share to 28 cents.

Oil States International: Oil States International supplies products and services across the oil and gas value chain, from drilling and completion to subsea, production, and infrastructure. It builds offshore equipment such as risers, cranes, winches, and subsea pipeline components, and supports vessels and rigs. The #3 Ranked company also delivers drilling and fishing services, perforating systems, and well completion tools.

Founded in 1937, Oil States has grown through more than 40 acquisitions into a global operator in over 25 countries. Headquartered in Houston, it serves energy, industrial, and military customers. Operations are organized into Offshore/Manufactured Products, Well Site Services, and Downhole Technologies, combining engineered equipment with consumable products and field support.

The Zacks Consensus Estimate for 2026 revenues of OIS indicates 44.1% growth. Currently trading under $9, Oil States has a four-quarter earnings surprise of 12.5% on average.

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

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