10 Best Energy Services for February 2026
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Market Overview & Selection Criteria
The energy and infrastructure sectors are experiencing robust demand driven by global electrification trends, renewable transitions, and stable cash flows from midstream assets. These top 10 stock picks were selected using ValueSense's proprietary intrinsic value methodology, focusing on companies with Quality ratings above 4.9, strong ROIC, positive free cash flow generation, and significant upside to intrinsic value estimates. Criteria emphasize undervaluation (current price below intrinsic value), revenue stability, and sector diversification across power generation, pipelines, oil services, and consumer staples with energy exposure. This watchlist highlights opportunities in best value stocks for retail investors seeking undervalued stocks to buy in energy services and infrastructure.
Featured Stock Analysis
Stock #1: GE Vernova Inc. (GEV)
| Metric | Value |
|---|---|
| Market Cap | $198.1B |
| Quality Rating | 6.2 |
| Intrinsic Value | $217.2 |
| 1Y Return | 89.9% |
| Revenue | $38.1B |
| Free Cash Flow | ($325.0M) |
| Revenue Growth | 8.9% |
| FCF margin | (0.9%) |
| Gross margin | 19.8% |
| ROIC | 8.8% |
| Total Debt to Equity | 0.0% |
Investment Thesis
GE Vernova Inc. (GEV) stands out with a Quality rating of 6.2 and an intrinsic value of $217.2, suggesting substantial undervaluation in the power generation and electrification space. The company reports a massive $198.1B market cap, $38.1B revenue, and 8.9% revenue growth, underpinned by a solid 19.8% gross margin and 8.8% ROIC. Despite a negative Free Cash Flow of $325.0M and -0.9% FCF margin, the 89.9% 1Y Return reflects strong market momentum, with zero Total Debt to Equity providing a pristine balance sheet for growth investments in renewables and grid infrastructure.
This analysis positions GEV as a core holding for investors eyeing energy infrastructure stock picks, where high ROIC and debt-free status support long-term compounding amid rising power demand.
Key Catalysts
- Exceptional 89.9% 1Y Return signals momentum in electrification trends
- 8.9% revenue growth and 8.8% ROIC drive scalable expansion
- 0.0% Total Debt to Equity enables aggressive capital deployment
Risk Factors
- Negative Free Cash Flow $325.0M and -0.9% FCF margin indicate cash burn pressures
- Dependence on capital-intensive projects in volatile energy markets
Stock #2: Enbridge Inc. (ENB)
| Metric | Value |
|---|---|
| Market Cap | $106.2B |
| Quality Rating | 5.1 |
| Intrinsic Value | $83.5 |
| 1Y Return | 11.4% |
| Revenue | $64.3B |
| Free Cash Flow | $3,965.0M |
| Revenue Growth | 32.6% |
| FCF margin | 6.2% |
| Gross margin | 25.6% |
| ROIC | 5.5% |
| Total Debt to Equity | 159.1% |
Investment Thesis
Enbridge Inc. (ENB), a midstream energy leader, features a Quality rating of 5.1 and intrinsic value of $83.5, highlighting undervaluation with a $106.2B market cap. Key metrics include $64.3B revenue, explosive 32.6% revenue growth, $3,965.0M Free Cash Flow, and 6.2% FCF margin, complemented by 25.6% gross margin and 5.5% ROIC. The 11.4% 1Y Return underscores steady performance, though 159.1% Total Debt to Equity warrants monitoring in a high-interest environment.
ENB's robust cash flows make it a staple in pipeline stock picks, offering yield stability and growth in North American energy transport.
Key Catalysts
- Stellar 32.6% revenue growth fuels pipeline expansion
- Strong $3,965.0M Free Cash Flow supports dividends and projects
- 25.6% gross margin ensures profitability resilience
Risk Factors
- Elevated 159.1% Total Debt to Equity exposes to rate hikes
- Sector sensitivity to oil price fluctuations
Stock #3: Starbucks Corporation (SBUX)
| Metric | Value |
|---|---|
| Market Cap | $104.2B |
| Quality Rating | 6.2 |
| Intrinsic Value | $47.5 |
| 1Y Return | -15.2% |
| Revenue | $37.7B |
| Free Cash Flow | $2,336.9M |
| Revenue Growth | 4.3% |
| FCF margin | 6.2% |
| Gross margin | 32.0% |
| ROIC | 8.8% |
| Total Debt to Equity | (399.9%) |
Investment Thesis
Starbucks Corporation (SBUX) brings consumer stability to this energy-focused list with a Quality rating of 6.2 and intrinsic value of $47.5, amid a $104.2B market cap. Metrics show $37.7B revenue, modest 4.3% revenue growth, $2,336.9M Free Cash Flow, 6.2% FCF margin, 32.0% gross margin, and 8.8% ROIC. The -15.2% 1Y Return reflects recent headwinds, but negative Total Debt to Equity of -399.9% (net cash position) bolsters flexibility.
As an outlier in best value stocks, SBUX offers diversification with high margins and global brand power.
Key Catalysts
- High 32.0% gross margin and 8.8% ROIC for operational efficiency
- $2,336.9M Free Cash Flow enables buybacks and expansion
- Negative debt position provides financial agility
Risk Factors
- -15.2% 1Y Return amid consumer spending slowdowns
- Competitive pressures in premium coffee market
Stock #4: Petróleo Brasileiro S.A. - Petrobras (PBR)
| Metric | Value |
|---|---|
| Market Cap | $99.6B |
| Quality Rating | 6.1 |
| Intrinsic Value | $32.9 |
| 1Y Return | 8.6% |
| Revenue | $86.4B |
| Free Cash Flow | $15.9B |
| Revenue Growth | (11.6%) |
| FCF margin | 18.4% |
| Gross margin | 48.1% |
| ROIC | 8.8% |
| Total Debt to Equity | 88.5% |
Investment Thesis
Petróleo Brasileiro S.A. - Petrobras (PBR) excels in oil production with a Quality rating of 6.1, intrinsic value $32.9, and $99.6B market cap. It boasts $86.4B revenue, $15.9B Free Cash Flow, 18.4% FCF margin, 48.1% gross margin, and 8.8% ROIC, despite -11.6% revenue growth and 8.6% 1Y Return. Total Debt to Equity of 88.5% is manageable given cash generation.
PBR represents a high-margin play in energy stock picks, leveraging offshore assets for value.
Key Catalysts
- Exceptional 18.4% FCF margin and $15.9B Free Cash Flow
- 48.1% gross margin from efficient operations
- 8.8% ROIC supports capital returns
Risk Factors
- -11.6% revenue growth tied to commodity cycles
- Geopolitical risks in Brazil
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Stock #5: The Williams Companies, Inc. (WMB)
| Metric | Value |
|---|---|
| Market Cap | $81.4B |
| Quality Rating | 6.2 |
| Intrinsic Value | $39.1 |
| 1Y Return | 18.9% |
| Revenue | $11.5B |
| Free Cash Flow | $1,802.0M |
| Revenue Growth | 7.5% |
| FCF margin | 15.7% |
| Gross margin | 59.9% |
| ROIC | 5.5% |
| Total Debt to Equity | 188.3% |
Investment Thesis
The Williams Companies, Inc. (WMB) offers midstream reliability with Quality rating 6.2, intrinsic value $39.1, and $81.4B market cap. Highlights include $11.5B revenue, 7.5% revenue growth, $1,802.0M Free Cash Flow, 15.7% FCF margin, 59.9% gross margin, 5.5% ROIC, and 18.9% 1Y Return. 188.3% Total Debt to Equity is offset by margins.
WMB fits undervalued pipeline stocks with superior gross margins.
Key Catalysts
- Industry-leading 59.9% gross margin
- 15.7% FCF margin and 18.9% 1Y Return
- 7.5% revenue growth in natural gas transport
Risk Factors
- High 188.3% Total Debt to Equity
- Regulatory hurdles for expansions
Stock #6: Enterprise Products Partners L.P. (EPD)
| Metric | Value |
|---|---|
| Market Cap | $72.4B |
| Quality Rating | 4.9 |
| Intrinsic Value | $94.2 |
| 1Y Return | -1.0% |
| Revenue | $53.0B |
| Free Cash Flow | $3,093.0M |
| Revenue Growth | (6.2%) |
| FCF margin | 5.8% |
| Gross margin | 13.4% |
| ROIC | 9.8% |
| Total Debt to Equity | 3.2% |
Investment Thesis
Enterprise Products Partners L.P. (EPD) shows value with Quality rating 4.9, intrinsic value $94.2, and $72.4B market cap. Data reveals $53.0B revenue, -6.2% revenue growth, $3,093.0M Free Cash Flow, 5.8% FCF margin, 13.4% gross margin, 9.8% ROIC, -1.0% 1Y Return, and low 3.2% Total Debt to Equity.
EPD appeals to conservative stock watchlist builders with top ROIC.
Key Catalysts
- Highest 9.8% ROIC in the group
- $3,093.0M Free Cash Flow stability
- Minimal 3.2% Total Debt to Equity
Risk Factors
- -6.2% revenue growth and -1.0% 1Y Return
- Midstream volume variability
Stock #7: Quanta Services, Inc. (PWR)
| Metric | Value |
|---|---|
| Market Cap | $70.7B |
| Quality Rating | 6.0 |
| Intrinsic Value | $288.7 |
| 1Y Return | 53.5% |
| Revenue | $27.2B |
| Free Cash Flow | $830.8M |
| Revenue Growth | 18.7% |
| FCF margin | 3.1% |
| Gross margin | 14.3% |
| ROIC | 7.3% |
| Total Debt to Equity | 5.8% |
Investment Thesis
Quanta Services, Inc. (PWR) thrives in infrastructure with Quality rating 6.0, intrinsic value $288.7, and $70.7B market cap. Metrics: $27.2B revenue, 18.7% revenue growth, $830.8M Free Cash Flow, 3.1% FCF margin, 14.3% gross margin, 7.3% ROIC, 53.5% 1Y Return, 5.8% Total Debt to Equity.
PWR is a growth standout in energy services stock picks.
Key Catalysts
- Impressive 18.7% revenue growth and 53.5% 1Y Return
- 7.3% ROIC in high-demand services
- Low 5.8% Total Debt to Equity
Risk Factors
- Modest 3.1% FCF margin
- Project execution risks
Stock #8: Kinder Morgan, Inc. (KMI)
| Metric | Value |
|---|---|
| Market Cap | $67.3B |
| Quality Rating | 5.7 |
| Intrinsic Value | $26.8 |
| 1Y Return | 9.6% |
| Revenue | $17.0B |
| Free Cash Flow | $2,019.0M |
| Revenue Growth | 12.1% |
| FCF margin | 11.9% |
| Gross margin | 43.7% |
| ROIC | 6.6% |
| Total Debt to Equity | 98.1% |
Investment Thesis
Kinder Morgan, Inc. (KMI) delivers with Quality rating 5.7, intrinsic value $26.8, $67.3B market cap, $17.0B revenue, 12.1% revenue growth, $2,019.0M Free Cash Flow, 11.9% FCF margin, 43.7% gross margin, 6.6% ROIC, 9.6% 1Y Return, 98.1% Total Debt to Equity.
Strong margins position KMI in top midstream stocks.
Key Catalysts
- 12.1% revenue growth and 11.9% FCF margin
- 43.7% gross margin efficiency
- Steady 9.6% 1Y Return
Risk Factors
- 98.1% Total Debt to Equity
- Energy transition shifts
Stock #9: Energy Transfer LP (ET)
| Metric | Value |
|---|---|
| Market Cap | $67.1B |
| Quality Rating | 5.4 |
| Intrinsic Value | $43.3 |
| 1Y Return | -11.0% |
| Revenue | $79.8B |
| Free Cash Flow | $5,262.0M |
| Revenue Growth | (4.7%) |
| FCF margin | 6.6% |
| Gross margin | 20.4% |
| ROIC | 8.3% |
| Total Debt to Equity | 57.2% |
Investment Thesis
Energy Transfer LP (ET) features Quality rating 5.4, intrinsic value $43.3, $67.1B market cap, $79.8B revenue, -4.7% revenue growth, $5,262.0M Free Cash Flow, 6.6% FCF margin, 20.4% gross margin, 8.3% ROIC, -11.0% 1Y Return, 57.2% Total Debt to Equity.
ET's cash flow strength aids recovery in value energy stocks.
Key Catalysts
- Robust $5,262.0M Free Cash Flow
- 8.3% ROIC and 6.6% FCF margin
- Scale via $79.8B revenue
Risk Factors
- -11.0% 1Y Return and -4.7% revenue growth
- Debt at 57.2% Total Debt to Equity
Stock #10: TC Energy Corporation (TRP)
| Metric | Value |
|---|---|
| Market Cap | $60.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $30.3 |
| 1Y Return | 29.6% |
| Revenue | CA$12.4B |
| Free Cash Flow | CA$1,951.0M |
| Revenue Growth | (23.2%) |
| FCF margin | 15.7% |
| Gross margin | 50.7% |
| ROIC | 5.1% |
| Total Debt to Equity | 163.3% |
Investment Thesis
TC Energy Corporation (TRP) closes the list with Quality rating 6.1, intrinsic value $30.3, $60.9B market cap, CA$12.4B revenue, -23.2% revenue growth, CA$1,951.0M Free Cash Flow, 15.7% FCF margin, 50.7% gross margin, 5.1% ROIC, 29.6% 1Y Return, 163.3% Total Debt to Equity.
High margins make TRP resilient in Canadian energy picks.
Key Catalysts
- 50.7% gross margin and 15.7% FCF margin
- 29.6% 1Y Return momentum
- Strong CA$1,951.0M Free Cash Flow
Risk Factors
- Sharp -23.2% revenue growth
- High 163.3% Total Debt to Equity
Portfolio Diversification Insights
This top 10 stock watchlist clusters heavily in energy midstream (ENB, WMB, EPD, KMI, ET, TRP ~60% allocation), providing yield stability and inflation hedges, balanced by upstream (PBR), infrastructure/services (GEV, PWR ~25%), and consumer (SBUX ~15%). Midstream's high FCF margins (avg. 10%) complement GEV/PWR growth (avg. 13% rev growth), reducing volatility. Cross-references: Pair low-debt GEV/EPD with high-yield midstream for balanced sector allocation; SBUX adds non-cyclical exposure. Overall, 70% energy focus suits commodity upcycles, with ROIC avg. 7.6% supporting diversification.
Market Timing & Entry Strategies
Consider entries during energy sector dips (e.g., oil below $70/bbl) or infrastructure bill catalysts, targeting 10-20% pullbacks from highs for better margins of safety. Dollar-cost average into high-intrinsic-upside names like GEV/PWR over 3-6 months; monitor Q4 earnings for FCF trends. Use stock watchlist tools to track vs. intrinsic values, entering when prices approach 80% of estimates amid positive ROIC stability.
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FAQ Section
How were these stocks selected?
These top 10 stock picks were chosen via ValueSense's intrinsic value model, prioritizing Quality ratings >4.9, high ROIC, FCF positivity, and undervaluation gaps, focusing on energy/infrastructure for best value stocks.
What's the best stock from this list?
GEV leads with 89.9% 1Y Return, zero debt, and $217.2 intrinsic value, ideal for growth; EPD offers top 9.8% ROIC for conservatives in this stock watchlist.
Should I buy all these stocks or diversify?
Diversify across midstream 60%, services 25%, and staples 15% to balance yields and growth; avoid full allocation to mitigate sector risks in investment opportunities.
What are the biggest risks with these picks?
High debt (e.g., ENB 159.1%, TRP 163.3%), revenue volatility (e.g., TRP -23.2%), and FCF negativity (GEV) are key concerns amid rates and energy transitions.
When is the best time to invest in these stocks?
Target dips in energy prices or post-earnings FCF beats; ladder entries for undervalued stocks to buy when trading 20% below intrinsic values like PWR's $288.7.