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Just For You Energy Stocks Surge on Oil Spike: Buy, Hold, or Take Profits?By Chris Markoch. Posted: 3/25/2026. 
Key Points - Energy stocks are rising amid geopolitical tensions, with volatility in oil prices creating both risks and opportunities for investors.
- Chevron, Valero, and Enbridge highlight different ways to gain exposure across upstream, midstream, and downstream segments.
- Dividend yields and pricing power make energy stocks attractive, even as investors weigh whether to take profits or remain invested.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
Since hostilities involving Iran began on Feb. 28, energy stocks have been among the few reliable winners for bullish investors. That changed after a social-media post by President Trump pushed the price of oil—and oil stocks—lower. It was a reminder that when markets are on a knife's edge, it doesn't take much to trigger large moves. It's worth noting that Chevron Corp. (NYSE: CVX) CEO Mike Wirth says markets are underpricing supply shocks from Iran's potential closure of the Strait of Hormuz. Wirth said the market was trading on "scant information" and "perception." Investors are facing a firehose of information, much of it of uncertain accuracy. Gold surged from $2,063 in January 2024 to an all-time high of $5,595 in January 2026 - but 'Canadian Gold' left ordinary gold, silver, the NASDAQ, and the S-P 500 in the dust. Known as 'the Warren Buffett of Canada,' one of the world's most connected investors is loading up on this asset. Find out what Canadian Gold is and why it has outperformed since inception. Click here to discover what Canadian Gold is and why it outperforms Investors shouldn't simply dismiss this as an oil executive "talking his book." Wirth runs an oil major with decades of operations in Venezuela; he knows what a disrupted market looks like and how difficult it can be to return to "normal." That implies even if oil prices avoid a worst-case scenario—such as the $200-per-barrel forecast from Citigroup (NYSE: C)—consumers could face higher pump prices for some time. If you've been on the sidelines for this rally, there's still time to get involved: different parts of the industry present distinct buying opportunities. Big Oil Strength: Chevron Leads the Charge in a Tight Supply Market Starting with Big Oil, Chevron is a leading name to consider. CVX is up nearly 33% in 2026 and has broken out of a range it traded in since 2022. The surge began after U.S. military operations in Venezuela, in part because Chevron is the only oil company currently allowed to operate there. It's fair to ask whether CVX could snap back if hostilities in the Strait of Hormuz subside. Chevron is trading about 11% above its consensus price target. Analysts have been raising targets; the most bullish comes from Piper Sandler, which lifted its price target for Chevron to $242 from $179. Over the last three years, CVX has delivered a total return of around 50%. That may not excite pure growth investors, but it underscores Chevron's status as a Dividend Aristocrat. Even after the recent run-up, Chevron still yields about 3.5%, or roughly $7.12 per share annually at current prices. Refining Advantage: Valero Thrives on Volatility and Margin Expansion If Chevron represents the upstream side of the energy trade, Valero Energy (NYSE: VLO) offers a different exposure: a pure-play refining story that can prosper even when crude prices are volatile. While many energy stocks rise and fall with oil, refiners like Valero profit from the spread between crude input costs and refined product prices—known as the crack spread. A supply disruption that hurts producers can actually widen refiners' margins. Valero is the largest independent petroleum refiner in the world, with 15 refineries across the United States, Canada and the United Kingdom. That scale gives it a meaningful competitive moat and operational flexibility to adapt if disruptions in the Strait of Hormuz force changes in crude sourcing. VLO has climbed more than 45% in 2026 and trades about 20% above its consensus price target, though analysts have been revising targets upward. The stock looks a bit extended, but Valero also rewards patient investors with a dividend yield near 2%, or about $4.80 per share annually, combining cyclical upside with income. Midstream Stability: Enbridge Offers Income and Volume-Driven Growth Another way to participate in the energy rally is through midstream companies that operate the pipelines delivering oil and natural gas to refiners. These firms function like toll booths for the industry: they collect fees for moving product regardless of the commodity price. The key driver is volume, not price—and volumes are near record levels in early 2026. That's why Enbridge Inc. (NYSE: ENB) deserves consideration. The Canada-based company operates over 18,000 miles of pipeline and moves roughly 30% of North American crude oil production. It also transports about 20% of the natural gas consumed in the United States. Over the past three years, ENB has returned about 80%, showing the steady performance typical of midstream firms. The consensus price target of $65 implies nearly 20% upside from current levels, and that potential is complemented by a relatively safe payout that yields around 5.1%, or about $2.78 per share annually at current prices. |
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