Top 3 Energy and 1 Utilities Stocks: Mizuho’s Latest Rankings

Investing.com -- The energy sector continues to navigate volatile markets, with several companies standing out as potential winners according to recent analysis from Mizuho. These firms demonstrate strong fundamentals and strategic positioning despite ongoing challenges in commodity prices and economic uncertainty.

ConocoPhillips (NYSE:COP) leads Mizuho’s energy rankings with its combination of long-duration inventory, strong balance sheet, and industry-leading cash returns.

While some investors question whether the company can return $10 billion to shareholders while executing its approximately $12.5 billion capital plan, Mizuho believes ConocoPhillips has the financial flexibility to fulfill these commitments.

The company expects a free cash flow inflection of over $7 billion by 2029, with improvements beginning as early as the second half of 2025. Capital intensity is projected to decline starting in 2026 as long-cycle investments in LNG and Alaska start to roll off.

ConocoPhillips (NYSE:COP): With oil-weighted assets and low decline rates, COP offers consistent execution through market cycles.

The company has committed to returning 45% of cash flow from operations to shareholders in 2025, maintaining its long-term financial strategy even as oil prices hover around $65/barrel.

In recent developments, ConocoPhillips announced third-quarter 2025 results that surpassed earnings per share forecasts, reporting an adjusted EPS of $1.61, though revenue of $14.55 billion came in slightly below expectations.

Energy Transfer (NYSE:ET): As Mizuho’s top pick in the midstream space, ET offers numerous growth opportunities while maintaining balance sheet flexibility. The firm has begun receiving credit for its exposure to the AI/data center narrative, though Mizuho believes the market still underappreciates this potential.

ET’s improved leverage outlook could allow for more aggressive capital returns beyond its current 3-5% distribution growth rate.

Energy Transfer reported third-quarter 2025 earnings that missed analyst forecasts for both earnings per share, at $0.28, and revenue, which was $19.95 billion.

First Solar (NASDAQ:FSLR): As the largest US-based solar module manufacturer and the only global company not dependent on China’s crystalline silicon supply chain, First Solar is uniquely positioned to benefit from bipartisan solar module manufacturing tax credits in the US until 2032.

The company’s growing pricing power stems from rising import tariffs and dumping duties on competitors.

First Solar reported mixed third-quarter 2025 results, beating revenue expectations with $1.59 billion but slightly missing adjusted earnings per share estimates. Following the results, Jefferies raised its price target on the company’s stock.

Duke Energy (NYSE:DUK): In the Utilities sector, Mizuho views Duke as a premium name that should move into the "quality basket" now that the company has resolved its 2024 regulatory calendar.

After divesting non-regulated businesses and beginning modest equity issuance via an ATM in 2024, Duke has improved its credit metrics above downgrade thresholds.

The company’s service territory, which has minimal wildfire risk, is experiencing strong demand growth.

Duke Energy announced that its third-quarter 2025 performance exceeded expectations, with both adjusted earnings per share of $1.81 and revenue of $8.54 billion beating forecasts.

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