Crude oil is printing 2015 highs in prices, and some investors are starting to feel that perhaps the worst of the nine-month nightmare may be closer to being over. With some top companies in the West Texas Permian Basin starting to report better well results, the analysts at SunTrust Robinson Humphrey are becoming increasingly more positive on the stocks and the region.

In a new research report, the SunTrust team even makes the case that some of the elite firms in the Permian could report better-than-expected first-quarter results. In addition, they also think that some of these top stocks to buy could be takeover targets. We screened the SunTrust list for the top stocks to buy now, and they are: Concho Resources Inc. (NYSE: CXO), Energen Corp. (NYSE: EGN), Diamondback Energy Inc. (NASDAQ: FANG), Matador Resources Co. (NASDAQ: MTDR) and Ring Energy Inc. (NYSE: REI).

Concho Resources

This SunTrust favorite is one of the top energy plays in the Permian Basin. The independent oil and natural gas company is engaged in the acquisition, development and exploration of oil and natural gas properties. It also may be a possible buyout candidate.

Concho completed a successful secondary stock offering last quarter that raised close to $650 million. The company plans to use the net proceeds from this offering to repay the debts under the company’s credit facility, as well as for corporate purposes that include financing its three-year accelerated growth plan, capital expenditure tied to the recently announced midstream joint venture and potential future asset buys.

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The company posted strong fourth-quarter results that beat estimates, and the SunTrust team loves the Concho’s quality assets, low leverage and the ability to generate solid returns in today’s tough environment.

The SunTrust price target for the stock was raised to $151 from $137. The Thomson/First Call consensus target is $130.14. Shares closed up big on Wednesday at $125.04.

Energen

This oil and gas exploration and production company has its headquarters in Birmingham, Ala. It has 1.1 billion barrels of oil-equivalent proved, probable and possible reserves and another 2.2 billion barrels of oil-equivalent contingent resources. These all-domestic reserves and resources are located primarily in the Permian Basin. The company actually has been active in the region since the late 1960s and has made numerous major acquisitions in the past five years.

The company posted very encouraging fourth-quarter 2014 results back in February, and it could be poised to come in again with solid numbers for the second quarter.

The SunTrust price target was lifted from $83 to $90. The consensus target is $79.07. The stock closed Wednesday at $69.66 a share.

Diamondback Energy

This stock is the other current favorite of the SunTrust team. Diamondback is an independent oil and natural gas company headquartered in Midland, Texas, focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin\. Diamondback’s activities are primarily focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork and Cline formations.

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The SunTrust analysts cite the company’s top-tier asset base, solid accretive additions and financial discipline, which they think allows for not only continued solid cash flow but puts the company in play as a buyout candidate.

SunTrust raised the price target from $86 to $94, while the consensus estimate is lower at $88.44. The stock closed most recently at $82.41.

Matador Resources

This independent energy company is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. Matador also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas.

Last week the company priced a private offering of $400 million of 6.875% senior unsecured notes due 2023. Matador intends to use the net proceeds from the offering primarily to repay a portion of the outstanding borrowings under its revolving credit facility and the debt assumed in connection with the merger of Harvey E. Yates Co. and to fund a portion of its future capital expenditures and other general working capital needs.

SunTrust raised the price target from $27 to $36, while the consensus objective is $27.54. Shares closed Wednesday at $29.35.

Ring Energy

Ring Energy is engaged in the exploration, development and production of oil and gas in Texas and Kansas. It has interests in approximately 3,482 gross developed acres and 10,893 gross undeveloped acres in Texas, as well as 16,997 gross acres in Kansas. The company sells its oil and natural gas production to end users, marketers and other purchasers. It was formerly known as Transglobal Mining.

The company beat fourth-quarter earnings expectations, and it may be a solid small-cap way to play the Permian.

SunTrust raised the price target from $12 to $14, and the consensus target is even higher at $15.13. Shares closed at $11.90.

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The SunTrust picks are an outstanding way to play an oil rebound. Some of the stocks have rallied on recent oil strength, and investors may want to scale in purchases and watch for earnings results.

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