The energy sector has lagged the S&P 500 in the past year, but the International Energy Agency anticipates oil demand growth will accelerate in 2025. In addition, investors anticipate that President Donald Trump and his administration will support the energy sector with favorable policies. Stocks that are highly correlated to oil prices could generate big profits in 2025 and beyond.
However, high correlation to crude can be a double-edged sword, as many energy investors experienced when crude prices collapsed in 2020. Here are the seven Bank of America buy-rated stocks with the highest correlation to WTI crude oil prices.
This post originally appeared at U.S. News & World Report.