The great financial writer James Grant has often said the government should establish an “Office of Unintended Consequences.”

I couldn’t agree more.

Because no matter how much you (or I) love The Donald, he doesn’t intend to let energy prices surge. If they do, it’s a mistake—plain and simple.

And yet… here we are.

That’s the bad news.

The good news?

You can profit from it.

Now, I’m a goldbug. But I’d be remiss not to call out the surging energy sector. It’s another way to dodge the doldrums of tech stocks and fill up your wallet.

Energy Powers The Market

With everyone looking at precious metals, the quiet surge roaring through energy has been ignored.

In 2025, energy is up 8%, beating the S&P 500 by a staggering 11 points. That’s not just outperformance… that’s domination.

Why? A perfect storm of bullish catalysts.

Natural gas futures hit two-year highs, driven by an unseasonably cold winter, booming LNG exports, and surging electricity demand. Meanwhile, crude oil prices are climbing thanks to geopolitical tensions (some self-inflicted… thanks again, Donald).

But this isn’t just a price story. Energy companies have wised up after years of boom-and-bust. The new mantra? Capital discipline.

They’re not chasing growth at all costs anymore—they’re handing cash back to shareholders through buybacks and beefed-up dividends.

They’re also getting leaner and meaner: more output, fewer rigs, lower breakevens, fatter margins.

On a macro level, the picture is just as compelling.

Global energy demand is climbing as emerging markets industrialize and the U.S. electrifies. Add in AI-driven data centers (which might be a short-term sugar high) and a resurgence in U.S. manufacturing, and you’ve got a demand surge we haven’t seen in years.

While oil and gas steal the headlines, don’t sleep on renewables. Solar energy is projected to grow by 34% this year. The space's valuations have been beaten down, making them look attractive, especially for investors with a longer time horizon.

Bottom line: The energy sector is back. And evolving.

If this early 2025 run is any indication, it could be one of the most important (and lucrative) places to be this year.

Which Stocks?

Let’s look at a few opportunities in the energy sector. These stocks are all in the XLE ETF.

But first, you can just buy the XLE and save yourself the trouble. I’m not a massive fan of ETFs because I like to think I can pick individual stocks and ETFs generally don’t produce abnormally large returns. But if you’re not up for doing some research, choosing this ETF is smart.

If XLE breaks above 96, we should target 115. From 93, that’s a potential return of 23.65%.

But if you’re more interested in single stocks, let’s look at a few.

Already Running

These stocks have already started trending upward.

Hess (HES) has already surged this year, up 17.86%.

But if the price breaks above the 162/164 area, we’re looking at a 197 price target. From 160, that’s another 23%.

Another stock that’s already moved is Chevron (CVX). 

Again, CVX has had a great run in 2025, already up 14.85%. But if we get through the 170 area, we’re looking at a price target of 185.21. That’s another 10.9%. It's not as attractive, but it's better than a poke in the eye.

Popping Soon (Perhaps)

This stock may have started trending up.

ExxonMobil is starting to break out:

XOM is up 10.84% this year and broke out of a consolidation pattern last week.

If we get above the 123/124 area, the new price target is 139.32. From an 118 entry, that’s an 18.06% return.

Bottomed Out?

These stocks carry more risk, as they may not have bottomed out yet.

But if you want to take on more risk, look at Devon Energy (DVN).

DVN bounced off a bottom, rallying nearly 11.21% since the beginning of the year. There could be much more to run.

The next upside target for now is $45.25, a 22.3% move from a $37 entry point.

Finally, consider looking at Valero (VLO). Only up 9.07% this year, its run has started yet (if it does at all).

Its upside target is 161.10, a 20.67% move up from 133.50.

Wrap Up

Just a reminder: These are opportunities, not endorsements. I don’t own any of these names, and I’m not planning to—because I’m fully loaded on the gold and silver miners I’ve already shared with you.

But if those trades stall out?

Energy is next on my list.

With Trump’s unintentional inflationary push, this sector stands to benefit… big time.

Hope these help you stack more wins in 2025.

Have a great weekend!