Wolfe Research Names BP, ExxonMobil Top Oil Stocks for 2026

Wolfe Research Highlights Top Oil Picks for 2026

Wolfe Research has identified BP and ExxonMobil as leading performers in the oil sector through 2026, maintaining Outperform ratings for both. The firm highlights their strong execution, potential for accelerated free cash flow growth, and attractive valuations compared to industry peers.

Performance and Strategic Outlook

Both energy giants demonstrate significant momentum and strategic advantages that position them for sustained growth. Their financial health and operational efficiency are key factors in Wolfe's positive assessment.

BP's European Leadership

BP is named Wolfe's top European major pick, supported by a $51 price target. The analysis points to the Bumerangue discovery in Brazil and the recent profitable sale of its Castrol business as key differentiators. Leadership changes are also expected to accelerate cost-cutting and debt reduction efforts.

ExxonMobil's Financial Strength

ExxonMobil continues its strong performance, with shares outperforming the XLE energy index. Wolfe set a $140 price target, citing an updated financial plan that increases 2024-2030 earnings and cash flow projections significantly while improving capital efficiency.

Conclusion

With robust financial planning and key operational successes, BP and ExxonMobil are presented as undervalued leaders with superior visibility and execution. Their ability to outperform targets will be a key factor for investors to watch heading into 2026.

FAQ

Q: Which companies did Wolfe Research name as top oil stocks for 2026?
A: Wolfe Research identified BP and ExxonMobil as top performers, assigning Outperform ratings to both.

Q: What is the basis for ExxonMobil's positive rating?
A: ExxonMobil's rating is supported by its increased earnings projections, improved capital efficiency, and consistent outperformance in key areas like the Permian Basin.

Source: Investing.com