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5 Best Natural Gas Stocks to Buy in 2024

5 Best Natural Gas Stocks to Buy in 2024
Bogdan Stojkov

Summary: With the global shift towards cleaner and more sustainable energy sources, natural gas has emerged as a key player. In this article, we explore the best natural gas stocks, each available on our go-to online broker, eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

What are natural gas stocks?

Natural gas stocks are shares in companies involved in the exploration, production, and distribution of natural gas. As a form of fossil fuel, natural gas is considered a cleaner alternative to coal and oil, making it an attractive option for environmentally conscious investors. Companies in the natural gas sector can be involved in various stages of the supply chain, from exploration and drilling to transportation and distribution.

There are numerous natural gas stocks that pay dividends; hence, if you’re looking for stable income, check out our 3 Natural Gas Dividend Stocks guide.

5 best natural gas stocks to buy this year

If you’re interested in investing in natural gas, we’ve come up with our top 5 picks that are worthy of your attention. These include:

Each of these natural gas stocks is available for purchase on eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Devon Energy (DVN)

Devon Energy stands out as a top pick in the natural gas sector. The company is a leading player in the exploration and production of oil and natural gas. With a solid track record and a diversified portfolio, Devon Energy has positioned itself as a resilient contender in the energy market.

Equitrans Midstream (ETRN)

Equitrans Midstream plays a crucial role in the transportation and storage of natural gas. As a midstream company, it focuses on the infrastructure necessary to bring natural gas from the production site to end-users. With a stable and reliable revenue stream, Equitrans Midstream is a promising investment for those looking for a steady income in the natural gas sector.

Hess Corp (HES)

Hess Corp is a well-established energy company engaged in the exploration, production, and development of natural gas and crude oil. With a global presence and a commitment to sustainable practices, Hess Corp is poised for growth in the evolving energy landscape.

ExxonMobil (XOM)

A giant in the energy industry, ExxonMobil is a diversified company involved in various aspects of the energy sector, including natural gas. With a robust financial position and a history of adapting to changing market dynamics, ExxonMobil offers stability and growth potential for investors seeking exposure to natural gas.

Pioneer Natural Resources (PXD)

Pioneer Natural Resources is a key player in the exploration and production of natural gas, particularly in shale formations. The company’s strategic focus on high-quality assets and efficient operations positions it as a strong contender for investors bullish on the natural gas market.

Where to buy natural gas stocks

To invest in gas stocks, you can use online brokerage platforms. In this case, our preferred platform is eToro, a widely-used service boasting over 30 million users worldwide. Notably, it is regulated by FinCEN in the United States and provides a range of robust investing features, such as:

  • Commission-free stock trading;
  • Access to over 2,000 stocks from 17 different exchanges;
  • The option to purchase fractional shares;
  • Charting tools;
  • A user-friendly platform that simplifies the trading experience. 

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

For investors based in Canada, feel free to check out the best Canadian natural gas stocks in our guide right here.

Pros and cons of investing in natural gas

Pros

Pros

  • Diversification: Natural gas stocks offer diversification benefits for investors looking to balance their portfolios with exposure to the energy sector;
  • Growing demand: As the world transitions towards cleaner energy sources, the demand for natural gas will likely increase, benefiting companies in the sector;
  • Dividend potential: Many natural gas companies provide stable dividend yields, making them attractive for income-seeking investors.
Cons

Cons

  • Market volatility: The energy sector, including natural gas stocks, can be prone to volatility, influenced by factors such as geopolitical events and global economic conditions;
  • Regulatory risks: Government regulations and policies regarding energy production and consumption can impact the profitability of natural gas companies;
  • Environmental concerns: Despite being a cleaner alternative, natural gas extraction and production can still raise environmental concerns, affecting public perception and potentially leading to stricter regulations.

Common mistakes to avoid when buying natural gas stocks

Failing to thoroughly research and understand the natural gas market and individual companies can lead to uninformed investment decisions, and it’s one of the most common investing mistakes that you can make. Yet, it’s not the only one. You should also be wary of:

  • Ignoring risk tolerance: Investing always carries risks, and it’s crucial to assess your risk tolerance before diving into the natural gas sector or any other investment;
  • Overlooking regulatory changes: Changes in government policies and regulations can have a significant impact on gas stocks. Ignoring these factors may result in unforeseen challenges for investors;
  • Chasing trends: Following investment trends without considering the fundamentals of the natural gas market and specific companies can lead to poor investment choices.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about investing in the best natural gas stocks

What are natural gas stocks?

Natural gas stocks represent shares in companies involved in the exploration, production, and distribution of natural gas, a cleaner alternative to traditional fossil fuels.

How to invest in natural gas ETFs?

To invest in natural gas ETFs, you can use brokerage platforms and purchase shares just like individual stocks. Our go-to broker is eToro, a widely popular and licensed platform.

Are there any natural gas penny stocks?

Yes, there are natural gas penny stocks available. However, investors should exercise caution, conduct thorough research, and be aware of the risks that come along with investing in lower-priced, volatile stocks.

What are the best natural gas stocks right now?

Some top natural gas stocks currently include Devon Energy, Equitrans Midstream, Hess Corp, ExxonMobil, and Pioneer Natural Resources.

What is the best natural gas stock to buy?

Determining the best natural gas stock depends on individual preferences and investment goals. Nevertheless, a top pick would certainly be Devon Energy due to its position in the energy sector and its diversified portfolio.

Are natural gas stocks a safe investment?

Like any investment, natural gas stocks carry risks. However, with careful research and consideration of your risk tolerance, they can be a part of a diversified and potentially rewarding portfolio.

How do I buy natural gas stocks?

You can purchase natural gas stocks through online brokerage platforms, traditional brokerage firms, or financial institutions. Choose a platform that aligns with your preferences and financial goals. That said, our go-to broker for buying natural gas stocks is eToro.

What factors influence natural gas stock prices?

Factors such as global energy demand, geopolitical events, government regulations, and the overall economic climate influence natural gas stock prices.

Can I invest in natural gas stocks for the long term?

Yes, natural gas stocks can be suitable for long-term investors. However, it’s essential to stay informed about industry trends, market conditions, and company performance.

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