Energy Sector Gains Momentum: 3 Top Ranked Stocks to Buy Now

The energy sector has emerged as 2025's early market leader, surging nearly 10% year-to-date amid a powerful confluence of catalysts. A renewed focus on domestic energy production under the new administration, combined with soaring power demands from artificial intelligence infrastructure, has created a particularly favorable environment for energy stocks.The AI boom has become an unexpected but significant driver for the sector, as data centers and computing facilities require massive amounts of reliable power. This structural increase in energy demand has especially benefited natural gas producers and power generation companies, which are crucial to meeting the technology sector's growing energy needs.Against this backdrop, three companies stand out for their strong price momentum and top Zacks Ranks: Talen Energy (TLN), LandBridge Company LLC (LB), and National Fuel Gas Company (NFG).Image Source: KoyfinTalen Energy: Nuclear, Natural Gas and Traditional Energy AssetsTalen Energy stands out as a leading power generation and infrastructure company that has strategically positioned itself at the intersection of traditional and clean energy. The company operates an impressive fleet of power generation facilities, including nuclear, natural gas, and renewable assets, with a combined generating capacity of approximately 13,000 megawatts.The company's current market position is particularly compelling. Its nuclear fleet provides stable, carbon-free baseload power generation, which has become increasingly valuable as data centers and AI infrastructure demand reliable, continuous power supply. Talen even sold one of its nuclear power plants to Amazon last year for $650 million.Complementing this, Talen's natural gas generation assets are capitalizing on the surge in demand for flexible power generation, while the company continues to invest in infrastructure modernization to enhance operational efficiency. Talen's hybrid approach to energy generation has proven prescient in today's evolving energy landscape.Talen Energy boasts a Zacks Rank #1 (Strong Buy) rating, reflecting upward trending earnings revisions. Analysts have unanimously upgraded earnings forecasts, with the current year estimates rising by 5.46% in the last 60 days. Additionally, TLN shares are appreciating rapidly, with the stock making new record highs on Tuesday.Image Source: TradingViewLandBridge Company LLC: Leader in Natural Gas DistributionLandBridge Company LLC has emerged as a significant player in America's energy infrastructure landscape, specializing in natural gas transportation and storage assets. The company owns and operates an extensive network of pipelines and storage facilities strategically positioned across key energy corridors in the United States. LandBridge's infrastructure plays a crucial role in connecting natural gas production regions with high-demand markets, including rapidly expanding data center hubs.The company's business model is particularly attractive in the current environment, as it generates stable, fee-based revenue from long-term contracts while benefiting from increasing energy demand. LandBridge's recent expansion projects have focused on enhancing its natural gas transportation capacity to serve growing industrial and power generation customers, with a particular emphasis on regions experiencing surging energy demand from AI and technology infrastructure.Analysts have taken note of LandBridge Company’s growing influence in the natural gas space and have begun to raise earnings estimates. Although FY24 earnings estimates have been lowered by 1% in the last 30 days, the current quarter estimates have risen by 9.4%, which gives the company a Zacks Rank #1 (Strong Buy) rating. Additionally, earnings are expected to grow at an incredible 62.63% over the next year.Finally, LandBridge Company LLC stock is on the verge of breaking out to new all-time highs. A material move above $80 would signal a technical breakout and could drive even further buying from institutional investors.Image Source: TradingViewNational Fuel Gas Company: Vertically Integrated Natural Gas StockNational Fuel Gas Company represents a unique integrated energy company that operates across the entire natural gas value chain, from production and gathering to storage and distribution. The company's operations span five complementary business segments, including exploration and production in the prolific Appalachian Basin, midstream gathering and pipeline transportation, and utility services that deliver natural gas to over 750,000 customers in New York and Pennsylvania.The company's integrated business model has proven particularly advantageous in today's energy landscape. Through its exploration and production subsidiary, Seneca Resources, NFG continues to efficiently develop its significant natural gas reserves in the Marcellus and Utica shales. This upstream presence is complemented by its pipeline and storage segment, which not only transports NFG's own production but also provides critical infrastructure services to other producers and utilities in the Northeast.National Fuel Gas Company's regulated utility operations provide a stable foundation of predictable earnings, while its midstream and production businesses offer growth opportunities tied to increasing natural gas demand.National Fuel Gas Company has experienced some significant upgrades to its earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. Next quarter’s earnings estimates have been revised higher by 11.11% and next year’s estimates have climbed by 14.95%. Additionally, NFG stock is on fire and the most recent rally happened almost the same day the stock was upgraded to a top Zacks rank.Image Source: TradingViewShould Investors Buy Shares in NFG, LB and TLN?All three companies offer compelling exposure to the surging energy sector, backed by strong fundamentals and positive price momentum. Their strategic positioning in natural gas and power generation makes them particularly attractive as beneficiaries of both the AI infrastructure boom and supportive energy policies.Talen Energy offers exposure to both nuclear and natural gas power generation, LandBridge provides pure-play natural gas infrastructure exposure with high growth potential, and National Fuel Gas Company offers a more diversified approach through its vertically integrated operations. Given the strong tailwinds in the energy sector and their individual strengths, these stocks appear well-positioned for continued appreciation in 2025.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Fuel Gas Company (NFG): Free Stock Analysis Report LandBridge Company LLC (LB): Free Stock Analysis Report Talen Energy Corporation (TLN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks