Why Talos Energy Inc. (TALO) Stock is Gaining This Week

We recently compiled a list of the Energy Stocks that are Gaining This Week. In this article, we are going to take a look at where Talos Energy Inc. (NYSE:TALO) stands against the other energy stocks.

Despite the tough market conditions and crude oil prices plunging to a multi-year low, a number of major oil and gas players have reported better-than-expected results over the last week. Shareholder returns also remained strong, with several oil supermajors sticking to their commitments to return billions of dollars in dividends and share repurchases, despite declining profits amid a bleak outlook for oil.

The refining business is also proving more resilient than expected, with US Gulf Coast refiners processing Mars crude enjoying a doubling of margins YoY to some $16 per barrel. Despite a widely projected slowdown in demand, US refineries are currently operating at elevated levels, processing over 16 million bpd last week, 123,000 bpd higher than last year. However, it remains to be seen how long these levels can be maintained.

Another positive news came in the form of strong financial results and forward-looking capital spending guidance from tech giants and AI pioneers, reassuring investors on the sustainability of AI spending and the consequent rise in energy demand. Mark Zuckerberg’s technology firm even raised its capex guidance range from $60 billion to $65 billion to a new range of $64 billion to $72 billion, with CFO Susan Li stating in the company’s Q1 earnings call:

“…even with the capacity that we’re bringing online in 2025, we are having a hard time meeting the demand that teams have for compute resources across the company. So we are going to continually invest meaningfully here across our infrastructure footprint..”

Our Methodology:

To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between May 1 and May 8, 2025. The following are the Energy Stocks that Gained the Most This Week. The stocks are ranked according to their share price surge during this period.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Talos Energy Inc. (NYSE:TALO)

Share Price Gains Between May 1 – May 8: 12.34%

Talos Energy Inc. (NYSE:TALO) is a leading energy company focused on offshore oil and gas exploration and production in the United States Gulf Coast, the Gulf of America, and offshore Mexico.

The stock of Talos Energy Inc. (NYSE:TALO) received a boost after the company posted a surprise adjusted net profit for its Q1 2025 this week. The energy firm posted an adjusted EPS of $0.06, beating expectations by a significant $0.16. TALO’s revenue also grew by 19.33% YoY to just over $513 million, topping estimates by $14.77 million. Moreover, this was the fifth consecutive quarter of record production for the company, which achieved approximately 101 MBoe/d in the first quarter of 2025.

Overall, TALO ranks 10th on our list of the energy stocks that gained the most this week. While we acknowledge the potential of TALO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TALO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.