Ever wondered what it feels like to spot a diamond in the rough before everyone else? That’s the thrill of finding standout stocks in a sector that’s been overlooked, like energy in 2025. While the broader market has been on a tear, energy stocks have largely sat on the sidelines, missing the spring rally. But here’s the thing—sometimes, the best opportunities hide in the sectors everyone’s ignoring. Today, I’m diving into the energy space to uncover names that are not just surviving but thriving, with fundamentals that scream potential and charts that hint at breakouts. Let’s explore why companies like EQT Corp could be your ticket to catching the next big wave.
Why Energy Stocks Deserve Your Attention Now
The energy sector’s had a rough go in 2025, down 1.6% year-to-date, making it one of the market’s underdogs. Only 35% of S&P 500 energy stocks are trading above their 50-day moving average, and a mere 30% are above their 200-day line—numbers that scream underperformance. But here’s where it gets interesting: when a sector’s been beaten down, the strongest players often shine brightest when the tide turns. I’ve always believed that focusing on quality over bargain-bin bets is the smarter play. Instead of chasing the cheapest stocks hoping for a rebound, why not zero in on companies with solid fundamentals and technical setups that suggest they’re ready to lead?
“In a struggling sector, the best companies often emerge as leaders when sentiment shifts.”
– Market strategist
That’s the lens we’re using today. By digging into the energy sector, we’ve pinpointed four stocks that stand out: two with growth potential and two offering steady dividends. Among them, one name keeps stealing the spotlight for its blend of value, momentum, and technical strength. Let’s break it down.
EQT Corp: The Natural Gas Powerhouse
If you’re looking for a stock that’s bucking the energy sector’s downward trend, EQT Corp is hard to ignore. This natural gas producer, rooted in the Marcellus and Utica shales, has posted a jaw-dropping 21% year-to-date return in 2025, making it the second-best performer in the energy space. That’s not just good—it’s exceptional, ranking it among the top 35 stocks in the entire S&P 500 this year. So, what’s driving this?
For starters, EQT’s fundamentals are rock-solid. The company’s expecting a 110% year-over-year EPS growth this year, with another 47% growth projected for 2026. That’s the kind of number that makes investors sit up and take notice. Add to that a healthy 17% operating margin and a forward P/E ratio of just 11x, and you’ve got a stock that’s delivering growth without the nosebleed valuations you’d expect. It’s like finding a sports car priced like a sedan.
- Core operations: Focused on natural gas in the Appalachian Basin, with revenue primarily from the Marcellus Shale.
- Institutional backing: Hedge funds like AQR and DE Shaw have been increasing their stakes, signaling confidence.
- Technical edge: Trading near a key breakout level with well-defined support, offering clear risk management.
From a technical perspective, EQT’s chart is setting up nicely. The stock recently broke through resistance at the $50-$52 range, which should now act as support. With an RSI in the low 60s, it’s got room to run without being overbought. If it pushes past $56 with strong volume, that could be the green light for a bigger move. In my experience, stocks like this—value plays with momentum characteristics—tend to shine when sectors rotate back into favor.
Expand Energy: The Growth Contender
Another name catching eyes is Expand Energy (EXE), the largest natural gas producer in the U.S., with a sprawling 1.9 million acres of holdings. EXE’s growth story is compelling, with free cash flow soaring to $533 million in its latest quarter, up from just $131 million a year ago. That’s the kind of cash generation that fuels flexibility—whether it’s paying down debt, issuing dividends, or reinvesting in operations.
What sets EXE apart is its disciplined approach to capital. Their earnings reports outline a clear capital return framework: a base dividend, $500 million earmarked for debt reduction, and plans for variable dividends to reward shareholders. But here’s the catch—EXE’s operating margins are slimmer at 2%, compared to EQT’s 17%. While EXE’s growth is undeniable, EQT’s profitability gives it the edge for now.
“A company that balances growth with shareholder returns is a rare find in a volatile sector.”
Still, EXE’s chart is worth watching. It’s showing signs of consolidation near recent highs, and a breakout could signal more upside. If you’re betting on natural gas demand spiking, EXE’s scale makes it a strong contender.
Steady Players: Williams Cos. and Kinder Morgan
Not every investor wants the high-octane growth of EQT or EXE. For those craving stability, Williams Cos. (WMB) and Kinder Morgan (KMI) offer a more defensive play. Both are midstream giants, operating pipelines and refineries that provide steady cash flows, even in a tough energy market. WMB boasts a 3.45% dividend yield, while KMI ups the ante with 4.25%. These aren’t stocks that’ll double overnight, but they’re built to weather storms.
| Stock | Dividend Yield | Sector Role |
| EQT Corp | N/A | Growth-Oriented Natural Gas |
| Expand Energy | Variable | Growth-Oriented Natural Gas |
| Williams Cos. | 3.45% | Midstream Pipelines |
| Kinder Morgan | 4.25% | Midstream Pipelines |
These companies thrive on consistency. Their business models rely on long-term contracts, which insulate them from the wild swings of commodity prices. If you’re building a portfolio with a mix of growth and income, WMB and KMI are solid anchors.
Why Natural Gas Is the One to Watch
Let’s zoom out for a second. Why focus on natural gas producers like EQT and EXE? For one, natural gas is increasingly seen as a bridge fuel in the transition to cleaner energy. Demand is holding strong, especially as industries and utilities lean on it for reliability. Plus, the Marcellus Shale—where EQT dominates—is one of the most cost-efficient production regions in the U.S. Combine that with rising institutional interest, and you’ve got a sector with tailwinds brewing.
But it’s not just about fundamentals. The technical setups for these stocks suggest they’re coiled for a move. EQT, in particular, feels like it’s on the cusp of something big. Its chart shows a tight consolidation near resistance, and a high-volume breakout could spark serious momentum. I’ve seen this pattern before—when a stock in a lagging sector starts to act right, it often drags the whole group along.
Risk Management: Playing It Smart
Investing in energy stocks isn’t for the faint of heart. Volatility comes with the territory, and sector rotations can be unpredictable. That’s why risk management is non-negotiable. For EQT, the $50-$52 support level is your line in the sand. If it holds, the upside potential is significant. If it breaks, you’ve got a clear exit strategy. Keeping an eye on RSI and volume can also help you time entries and exits.
- Define your risk: Set stop-losses based on key support levels like $50-$52 for EQT.
- Watch the volume: A breakout above $56 with strong volume confirms the trend.
- Stay patient: Sector rotations take time—don’t chase momentum blindly.
Perhaps the most exciting part of this setup is the potential for a broader sector rally. If energy catches a bid, stocks like EQT could lead the charge, while WMB and KMI provide stability. It’s a balanced approach that lets you play both offense and defense.
How to Position for the Energy Comeback
So, how do you play this? First, prioritize quality. Stocks like EQT, with its blend of growth and value, are rare. Second, don’t ignore the income plays—WMB and KMI offer dividends that can cushion any sector turbulence. Finally, keep an eye on the broader market. If tech or consumer stocks start to wobble, capital could flow into energy, sparking the rotation we’re anticipating.
In my view, the energy sector’s current underperformance is a setup, not a setback. By focusing on the strongest names now, you’re positioning yourself to ride the wave when sentiment shifts. EQT’s profitability, technical setup, and institutional backing make it the standout, but EXE, WMB, and KMI each bring something to the table. The question is: are you ready to act when the sector heats up?
“The best time to plant a tree was 20 years ago. The second-best time is now.”
That’s the mindset for energy stocks in 2025. Get in early, manage your risk, and let the fundamentals do the talking. With names like EQT leading the way, the energy sector might just surprise everyone this year.
