UBS recommends the top energy and utility stocks to own for the remainder of the year.

UBS has released its list of highest-conviction energy picks for the remainder of the year, including Suncor Energy, Coterra Energy, SLB, NextEra Energy, and First Solar. Energy and utilities sectors have been performing well this year, outpacing the broader market. Analyst William Appicelli pointed out the renewable energy company NextEra’s leading position in renewables development and stable growth utility as key reasons for its favorable outlook. The stock is up almost 30% this year and UBS has assigned a $90 price target, suggesting a 15.1% potential upside.

First Solar is another favored stock by UBS, with a $350 price target implying a 26.5% potential upside. Analyst Jon Windham highlighted the company’s unique technology and strong demand as reasons for his bullish thesis. First Solar holds a significant share of the utility-scale market and is expanding its U.S. manufacturing capacity, positioning it well for future growth. In the oil services and equipment sector, SLB, formerly Schlumberger, is UBS’s top pick with a $68 price target, suggesting a potential upside of roughly 49.2%. Silverstein’s positive outlook on SLB is driven by factors such as the company’s high margin Digital and Integration unit and improved balance sheet.

Other energy and utility favorites named by UBS include Coterra and Suncor Energy. Coterra Energy, a mid-cap independent oil and natural gas company, has seen strong performance this year. Suncor Energy, an integrated energy company, is also part of UBS’s high-conviction picks for the remainder of the year. The energy and utilities sectors are expected to continue their positive performance, with companies like NextEra Energy and First Solar benefiting from AI-driven electricity demand and data center growth. Investors should keep an eye on these key stocks as they navigate the energy and utilities sectors for potential opportunities for growth.