Energy stocks are beginning to reassert their strength as macro conditions improve and demand drivers multiply. With recession fears easing as tariff negotiations show signs of progress, the market backdrop is turning more favorable, and energy names are catching a bid.

Adding to the bullish case is the continued global buildout of data centers, which is expected to drive a massive increase in electricity demand. AI infrastructure, cloud computing, and high-performance servers all require significant power, and utilities, natural gas providers, and midstream energy firms stand to benefit directly from this trend.

Crude oil has also shown technical strength, with recent price action suggesting a major bottom may be in place, offering further support to the sector.

Within this backdrop, several energy stocks stand out for their strong fundamentals, reasonable valuations, and positive earnings momentum. Global Partners (GLP), National Fuel Gas (NFG) and Epsilon Energy (EPSN) all carry top Zacks Ranks, attractive growth forecasts, and healthy price action, making them three of the most compelling opportunities in the energy space today.Zacks Investment Research

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Crude Oil Price Action Indicates a Potential Bottom

Crude oil prices were hit hard in early April following the shock of aggressive tariff headlines, which sent global growth expectations sharply lower. However, as policymakers have taken steps to ease trade tensions, those same growth forecasts are rebounding, bringing renewed optimism to energy markets.

Technically, crude appears to have found support. As shown in the chart below, prices reversed sharply off the $56 level, first in early April and again at the start of May, forming a textbook double bottom, a bullish reversal pattern. This action suggests that the downside pressure may be exhausted, and a base is forming.

At the same time, a clear resistance level has emerged near $64, which now serves as a key breakout point. If growth expectations continue to improve and data supports stronger demand, a breakout above $64 could set the stage for a sustained move toward $70.TradingView

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National Fuel Gas Company: Shares Cheap on Strong Outlook

National Fuel Gas is a vertically integrated natural gas company with operations spanning exploration and production, pipeline and storage, and utility distribution. This diverse business model allows NFG to benefit from multiple points along the energy value chain, providing both stability and growth potential, especially as demand for reliable, domestic natural gas continues to rise.

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The stock currently holds a Zacks Rank #2 (Buy), supported by a trend of upward earnings revisions—a strong signal that analysts are increasingly confident in the company’s outlook.

From a valuation perspective, NFG looks extremely attractive. Shares trade at just 11.7x forward earnings, well below the company’s 10-year median of 14x and the industry average of 16.8x. This discount is especially compelling when paired with NFG’s growth forecast: earnings are projected to rise 20.4% annually over the next three to five years.

That combination of growth and value results in a PEG ratio of just 0.58, placing NFG firmly in undervalued territory.Zacks Investment Research

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Epsilon Energy: Stock on the Verge of Major Breakout

Epsilon Energy is a small-cap natural gas exploration and production company focused on the Appalachian Basin. With a lean operational footprint and strong balance sheet, the company focuses on capital efficiency, disciplined growth, and returning value to shareholders—offering a 3.7% dividend yield and a penchant share buybacks. This combination makes it a reliable and attractive energy stock for a wide range of investor portfolios.

EPSN currently holds a Zacks Rank #1 (Strong Buy), reflecting strong bullish sentiment among analysts. Earnings estimates have surged recently, with current quarter projections up 38% over the last month and full-year estimates rising 9.1%. Additionally, the valuation remains reasonable, with shares trading at just 14.2x forward earnings.

From a technical standpoint, Epsilon stock is forming a bullish flag pattern, consolidating its recent gains in a range. A breakout above the $7.30 resistance level would confirm the pattern and likely trigger a fresh wave of buying, potentially sending the stock to new highs.TradingView

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Global Partners: Huge Earnings Upgrades and a Hefty Yield

Global Partners is a diversified midstream energy company involved in the wholesale, distribution, and retail of petroleum products and renewable fuels. Its vertically integrated business model includes a vast network of terminals, transportation assets, and over 1,600 retail locations across the Northeast, providing stable cash flows and broad market exposure.

One of GLP’s standout features is its 6% dividend yield, which is not only generous but also well-supported by consistent cash generation. Impressively, the company has increased its dividend at an average annual rate of 10% over the last five years, highlighting management’s commitment to returning value to shareholders.

The stock also holds a Zacks Rank #1 (Strong Buy), underpinned by a wave of significant earnings estimate revisions from the covering analyst. In just the past few days, current quarter earnings estimates have jumped 42.9%, with full-year 2025 estimates up 24.6% and 2026 projections rising 22.2%.Zacks Investment Research

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Should Investors Buy Shares in NFG, EPSN and GLP?

With improving macro conditions, rising energy demand from data centers, and technical support in crude oil prices, the backdrop for energy stocks is strengthening. National Fuel Gas, Epsilon Energy, and Global Partners offer a compelling mix of value, growth, and yield—each supported by a top Zacks Rank and bullish earnings momentum. For investors looking to capitalize on the next leg in the energy cycle, these three names deserve a spot on the watchlist.

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

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