For years, energy investors have shunned natural gas stocks in favor of oil stocks. But now, looking ahead to next year, traders are counting on gas gains to fuel their portfolios more than oil.
The First Trust Natural Gas ETF has seen nine straight weeks of inflows, its longest streak since 2021. Comstock Resources Inc. is the best-performing stock in the fund during that period, up 22%. Competitors such as EQT Corp. and Gulfport Energy Corp. have also increased by 16% over the same period.
Indeed, investors worried about the oversupply of oil in the market are flocking to gas, which has struggled to maintain its performance against oil-related stocks for years. The last time the First Trust Natural Gas ETF outperformed the Energy Select Sector SPDR Fund in a rising market was in 2013.
“There are a lot of things that can go wrong with oil, and there are a number of factors that can go right with gas,” said Dan Pickering, CEO and chief investment officer of Pickering Energy Partners. He added that there is currently “low expectations and nervousness around oil companies.”
Indeed, JPMorgan analyst Arun Jayaram sees a “role shift” next year, with investors favoring natural gas producers over oil drillers, given expectations of a glut in the market and “positive headwinds” that support gas producers. These include increased LNG exports from North America and growing demand for gas-fired power from data centers.
Antero Resources Corp., EQT and Gulfport are the main gas stocks recommended by JPMorgan to implement this theme. Jayaram raised his price targets for more than a dozen companies in the sector on December 5.

With expectations of higher natural gas prices, investors and analysts have so far been unconcerned that the industry can meet excess demand through higher production. Analysts are closely watching the group for signs that it may be ramping up drilling. “Among the eight largest publicly traded U.S. natural gas companies, consensus production expectations remain relatively stable,” Eight Capital analysts, including Phil Skolnick, wrote in a note.
Still, energy stocks face a bigger challenge in 2025 to compete for a place in investors’ portfolios, lagging the returns of the tech sector and the broader market. The S&P 500 Energy Index has now lagged the broader market for a second straight year.
Since early November, when seasonal demand for natural gas began to pick up, gas stocks have matched the broader market’s returns. Investors will want to see the same enthusiasm for data center trading that has boosted interest in utilities support natural gas in the months ahead.
“This is real, it’s not going away: you’re going to keep hearing about data centers and the potential for gas-fired power there,” Pickering said.
SECTORS IN FOCUS:
Chinese stocks traded in the U.S. fell in premarket trading as traders booked profits after a surge fueled by policymakers’ promises to boost growth.
COMPANY NEWS:
- Apple Inc. has the slowest revenue growth among Big Tech stocks and faces tariff risks ahead of Donald Trump’s second term. None of that has held back the stock.
- For most of the past century, Alaska Airlines has focused on transporting passengers across a relatively narrow swath of the U.S. But now it’s thinking much bigger.
- Luigi Mangione, a “person of interest” in the fatal shooting of UnitedHealth Group Inc. CEO Brian Thompson, was charged with illegal possession of a weapon and using false identification after his arrest in Pennsylvania on Monday.
- A 26-year-old man named as a person of interest in the fatal shooting of UnitedHealth Group Inc. CEO Brian Thompson Brian Thompson, was arrested in Pennsylvania on Monday after a five-day manhunt.
- Jane Fraser said it took her five years to pull off the most impossible Wall Street turnaround.
- See the “US Movers” column for today’s top stocks.
Varchev Absolute Trader
борсова платформа
- Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
- Използвай платформа с директно изпращане ордерите на борсите
- Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
- Cloud base платформа - твоят трейдинг сетъп на всяко устройство
- Traders Talk - чуй какво движи пазарите в реално време
- Market Sentiment - търгувай с настроенията на инвестиционите банки
- Top movers - най-горещите трейдове във всеки един момент
- Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
- Heat map - Търгувай в посоката на големите играчи
Read more:
Login to comment
Comments:
Leave a comment