Energy names were the biggest winners in the market this week, as a major production cut by OPEC+ boosted oil prices. Stocks posted a big rally early in the week but lost steam heading into Friday . The Dow Jones Industrial Average ended the week 2% higher, while the S & P 500 notched a 1.5% weekly gain and the Nasdaq Composite rose 0.08%. Earlier in the week, however, they were up more than 5%. Energy names, on the other hand, have gained steam as the week wore on. On Wednesday, the Organization of Petroleum Exporting Countries and its allies announced they would cut production by 2 million barrels per day, their largest cut since 2020 . Oil prices jumped on the news, and West Texas Intermediate crude topped $90 per barrel earlier on Friday. That helped lift the energy sector. The Energy Select Sector SPDR Fund is up 15% so far this week, on pace for its best week since Nov. 13, 2020. Top performers in the fund include Marathon Oil , APA Corp . and Halliburton , which are all up more than 22% week to date. In addition, eight of the top 10-performing S & P 500 stocks this week are energy names. DexCom, a medical device company that’s surged nearly 30% this week, and technology company Western Digital Corporation that’s jumped nearly 20%, are the only non-energy names rounding out the top ten. Stocks poised for major gains Of the top performing names this week, three energy names are standouts in that they are positively rated by many analysts covering them, and consensus price targets see them gaining at least another 20%. Nearly 68% of analyst covering Halliburton have a buy rating on the energy company, and the consensus price target for the firm implies upside of nearly 40%, according to data from FactSet. This year, Halliburton’s stock price has increased more than 34%, including this week’s more than 22% gain. APA Corporation is also seen as rising sharply over the next 12 months. The upside implied by the consensus price target on APA about 25%. About 46% of analysts that cover APA Corporation have a buy rating on the stock. This year, it’s gained more than 60%, including a 25% jump this week. Diamondback Energy is the third energy name where analysts see strong gains in the future. This week, the stock has surged nearly 10%, leaving it up nearly 32% on the year. Nearly 72% of the analysts covering the stock say it’s worth buying, and the upside seen by analysts on average is of more than 20%. Outside of energy names, analysts are also very bullish on Western Digital. Even though the firm gained nearly 20% this week, it’s down about 44% on the year, meaning it might be at a good spot to buy. Of the analysts that cover the technology company, roughly 40% have buy ratings on the name. There’s a nearly 35% upside to the consensus price target, however. Energy names Devon Energy , Hess , Pioneer Natural Resources and Schlumberger complete the list.
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