Best Energy Stocks to Buy Now
Plus: The whiplash economy, OpenAI’s IPO prospects, and why ESG strategies are doing better than you might think.
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Smart InvestorTom Lauricella, chief markets editor 
In this issue:
Amid a flood of Big Tech earnings, one trend was clear: The ‘picks and shovels’ trade for the artificial intelligence boom is roaring. As hyperscalers like Microsoft MSFT and Meta META plow billions into building out their AI offerings, companies ranging from Corning GLW to Texas Instruments TXN and NextEra NEE reported big gains in data center-related businesses. Still, this past week, it was energy stocks that led the rally as the stalemate around the Iran war saw oil prices push to new, recent highs. Despite this year’s big rally in energy stocks, sustainable investing strategies—most of which have at most tiny exposures to the sector—are holding their own compared with the overall market. And in some cases, ESG strategies are outperforming. Why? We explain. For investors at the other end of the spectrum, Tori Brovet updates the list of the best energy stocks to buy now, with nine names that Morningstar analysts believe are still trading at attractive prices. Among the events of the past week, one for the history books was the final meeting for Jerome Powell as Federal Reserve chair. What made it most notable was that in response to the Trump administration’s investigations and pressure on the Fed, Powell is taking the unusual step of staying on the board when his term as chair expires this month. Meanwhile, with the energy price spike adding to preexisting worries about inflation, Morningstar Senior US Economist Preston Caldwell says any changes to interest rates are likely off the table in 2026. He explains why he believes the Fed will cut rates in 2027. In the background, the Fed is facing a “whiplash economy” hit by one shock after another, says noted economist Claudia Sahm. What are the implications for the Fed and the outlook for the US economy? Check out this great interview with Sahm conducted by Morningstar’s Amy Arnott and Ben Johnson. The drama around this year’s expected mega-IPOs continues, this time with potentially bad news for OpenAI’s prospects. PitchBook senior analyst Harrison Rolfes looks at the implications of reports that OpenAI has missed multiple revenue targets and whether the AI-leader will be in any shape to go public in 2026. We’ve also got a look at how OpenAI is trying to distance itself from one of its big backers, Microsoft. Lastly, is bitcoin having an identity crisis? Valerio Baselli digs into bitcoin’s performance since the start of the Iran war and explores what it means for investors that the largest cryptocurrency continues to flip-flop between being a safe haven and a “risk” asset. As always, be sure to visit our Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events. 
These nine undervalued energy stocks look attractive today. Tori Brovet
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Markets and the Economy 
Five9 and Bloom Energy were among the week’s best stocks, while Roblox and Wingstop posted big losses. Jillian Moore
The eventual fading of oil-driven impacts should allow for rate cuts in 2027. Preston Caldwell
Advanced Micro Devices and Intel rank among the best stocks in April 2026, while the worst include Nike and Insmed. Bella Albrecht
The PCE Price Index increased 0.66% in March. Bella Albrecht, Lauren Solberg
We’re confident there will be long-term reverberations leading to a structurally weaker OPEC. Joshua Aguilar
The noted economist on the impact of supply shocks, the origins of the Sahm rule, why she thinks the Fed will remain in a holding pattern on rates, and more. Amy Arnott, Ben Johnson
Sustainability indexes are keeping pace with the broader market, despite the energy sector’s outperformance. Jillian Moore
These companies delivered the largest gains in total shareholder value. Amy Arnott
Plus, whichever AI company IPOs first defines what “good” looks like. Harrison Rolfes
OpenAI is gradually shedding one of its key early partners as it looks toward going public. Jacob Robbins
For the first time in decades, Warren Buffett will not be center stage. Here’s what that might mean. Susan Dziubinski, Jess Bebel
Palantir, CVS, Pfizer, and several energy companies report earnings. Plus, April jobs report slated for release. Jillian Moore
Chart of the Week 
With the cryptocurrency’s Iran war rally, bitcoin continues to flip-flop between performing like a haven and a risk asset. Valerio Baselli
Recent Earnings See what Morningstar analysts thought of AbbVie, ADP, Amazon, Alphabet, American Airlines, Apple, Atlassian, BP, Chevron, Cognizant, Corning, Coca-Cola, Eli Lilly, Exxon, Ford, GM, Mastercard, Meta, Microsoft, Qualcomm, Sirius XM, SoFi, Spotify, Teradyne, Verizon, Visa, and more.
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