Crude oil is struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence, and production increase by OPEC+ have all contributed to this downward pressure. In this environment, investors are buying quality energy stocks like Matador Resources Company MTDR, Permian Resources PR and Amplify Energy AMPY to capitalize on the current weakness.

Oil’s 2025 Slump

WTI crude recently dipped below $70 per barrel, marking its lowest point since December, with Brent crude following a similar trajectory. Investor sentiment remains uncertain as traders assess economic headwinds and the potential implications of a Russia-Ukraine peace agreement, which could ease sanctions and increase global oil supply.

Adding to the pressure, OPEC+ unexpectedly decided to resume some of its previously halted production. The Saudi-led alliance announced that eight member nations will begin increasing output starting April 1, initially adding 138,000 barrels per day, with plans to ramp up to 2 million barrels per day by 2026.

Concerns over U.S. trade tariffs and their broader economic impact have further dampened confidence, raising fears of slower growth and weaker energy demand.

A Buying Opportunity in the Energy Sector

For long-term investors, this slump presents a golden opportunity. Some see the recent sell-off as temporary, driven more by short-term fears than fundamental weakness. History has shown that downturns in commodities often create attractive entry points. As energy demand remains relatively robust and geopolitical factors continue to evolve, oil prices could rebound, rewarding those who take advantage of today’s depressed valuations.

How to Select the Companies

One of the ways to get it right is to select beaten-down stocks. Stressed valuations do not always indicate that the stock has lost all potential. In fact, some could actually make a great buy. However, prospective investors need to do adequate research before betting one’s hard-earned money on such stocks. 

We have selected three stocks that have all dropped 15% or more in the past month. A favorable Zacks Rank #1 (Strong Buy) or #2 (Buy), which justifies a company’s strong fundamentals and potential to overcome the current headwinds, further adds value to these stocks. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

MTDR, PR, AMPY 1 Month Stock Performance

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3 Stocks to Buy Now

Matador Resources Company: It is among the leading oil and gas explorer in the shale and unconventional resources in the United States. The Zacks Rank #2 company’s upstream operations are primarily concentrated in the Delaware and Midland basins — two sub-basins of Permian — and South Texas’ Eagle Ford shale. The Zacks Consensus Estimate for 2025 earnings of MTDR indicates 15.2% growth.

Permian Resources: Headquartered in Midland, TX, PR holds approximately 180,000 net acres and produces around 150,000 barrels of oil equivalent per day, with more than half being crude oil. The #2 Ranked company — focused on the Delaware Basin — prioritizes sustainable returns through strategic acquisitions and efficient development. The Zacks Consensus Estimate for Permian Resources’ 2025 earnings per share indicates 15.8% year-over-year growth. 

Amplify Energy: The Houston, TX-based operator, with a Zacks Rank of 2, has a strong presence in Oklahoma, Southern California and Texas, and has stakes such as Bairoil in the Rocky Mountains. Amplify Energy’s diversified operations — spread over five U.S. basins — mitigates pricing and operational disruptions, while its long-life, long-production assets generate sustainable cash flows. The Zacks Consensus Estimate for 2025 earnings of AMPY indicates 66.7% growth.

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Matador Resources Company (MTDR) : Free Stock Analysis Report

Amplify Energy Corp. (AMPY) : Free Stock Analysis Report

Permian Resources Corporation (PR) : Free Stock Analysis Report

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

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