Stocks to buy

The 3 Best Energy Stocks to Buy in May 2024

Energy stocks have been many investors’ favorites for a long time. The energy sector has various sub-industries and companies within them such as oil, natural gas, coal, alternative energy and many more. The energy sector has been and is still one of the most crucial drivers of industrial growth as it provides fuel to various economic activities. Here are the three best energy stocks to buy in May.

Plug Power (PLUG)

Person holding smartphone with logo of US hydrogen fuel cell company Plug Power Inc. on screen in front of website. Focus on phone display. Unmodified photo. PLUG stock

Source: T. Schneider /

Plug Power (NASDAQ:PLUG) is an American energy company that develops hydrogen fuel-cell solutions, replacing conventional batteries powered by electricity. 

Despite carrying high risk, investors should seriously consider PLUG as one of the best energy stocks to buy as it offers potential for long-term growth. 

Last month, Plug Power announced that its green hydrogen plants in Georgia and Tennessee had achieved their maximum capacity. They’re producing 10 tons and 15 tons of green hydrogen per day, respectively. The firm is expected to add an additional plant in Louisiana sometime next quarter. 

Moreover, Plug Power has signed two additional contracts to deliver Basic Engineering and Design Packages (BEDP) for projects in Europe and the United States. This will increase the company’s cumulative BEDP portfolio to 4.5 gigawatts. In the past four months, Plug Power has completed 850 MW of BEDP contracts, scaling its electrolyzer business rapidly.

Chevron (CVX)

CVX stock

Source: tishomir /

Based in San Ramon, California, Chevron (NYSE:CVX) is the second-largest integrated energy company in the United States and one of those most influential players in the energy market. 

On April 26th, Chevron released its first-quarter earnings results. While the company took a 4.1% decline in revenue year-over-year (YOY), its adjusted earnings at $2.93 per share narrowly beat its  expectations of $2.87. While the figures seem to offer not so positive results, Chevron still offers reasons investors should feel optimistic about the company in the medium to long run. 

One of the company’s recent successes comes from the Tengiz oil field in Kazakhstan. Tengiz is one of the world’s biggest oil fields, with more than 25 billion barrels of crude oil in reserves. Chevron owns 50% of this site the company recently announced the completion of its first phase expansion program that is set to produce an additional 12 million tons of crude oil annually. As Chevron expands continuously, this Tengiz site is expected to contribute largely to the company’s future growth. 

Enphase Energy (ENPH)

Smartphone with logo of American company company Enphase Energy Inc. (ENPH) on screen in front of business website. Focus on left of phone display. Unmodified photo.

Source: T. Schneider /

Enphase Energy (NASDAQ:ENPH) is a global energy technology company and the largest supplier of microinverter-based solar and battery systems in the world.

While the company took a loss and record-low sales in the first quarter, there are some positive signs of recovery. The company still boasts a 10-year revenue CAGR of 22%. Enphase Energy’s centers around increased solar adoption and the energy transition, which may be time-consuming but promising for the future. 

Furthermore, hedge funds seem to be optimistic about Enphase Energy’s future. Vanguard increased its position in shares of Enphase Energy by additional 192,854 shares in the fourth quarter of 2023. Bailie Gifford also acquired significant 4,078,723 shares during this period. The company’s CFO Mandy Yang purchased 4,000 shares of the stock as well.

If investors are willing to be patient, there are good reasons to buy Enphase Energy. 

On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Andy is a self-taught investor who is interested in ESG and socially responsible investing. He has managed the portfolio of a small investment fund and started his own research firm. Through his freelance writing on InvestorPlace, he hopes to find and share promising investments in companies with the goal of bettering the world.