Despite the ups and downs of the market, oil has consistently stayed over the $60 a barrel level, yet many oil stocks have struggled. The good news for investors is that one firm we cover on Wall Street, RBC Capital Markets, thinks that West Texas Intermediate crude can average $66 a barrel this year and $64 next year. While a long way from the heady days of $100 a barrel, it’s also a solid price level compared to when oil plunged to $26 in 2014.

With oil demand expected to keep expanding over the next five years, the United States will fulfill most of the world’s growing appetite, according to the International Energy Agency. Much of that production is expected to come from the vast resources in the Permian Basin of West Texas.

We screened our Wall Street database for the companies that should benefit and that do a large amount of exploration and production in the Permian. We found five that Baird covers that make good sense now.

Cimarex Energy

This stock is a top play for investors looking to the Permian Basin. Cimarex Energy Co. (NYSE: XEC) is an independent exploration and production company. Its primary activities are in the Mid-Continent and Permian Basin areas of the United States.

The company is focused on increasing shareholder value through strategies linked to generating attractive economic returns on capital employed and profitable growth in per-share reserves, production and cash flow. It intends to profitably grow reserves and production through a balanced mix of exploration, exploitation and acquisitions.

Cimarex has a diversified base of high-quality production and attractive drilling opportunities. It should be noted that hedge funds have initiated sizable new positions in the company over the past year, and like its brethren in the Permian, many consider the company a very solid takeover target.

Cimarex investors are paid a small 0.7% dividend. The Baird price target for the stock, which is posted at a whopping $136, compares with a Wall Street consensus target of $142.73. The stock closed Wednesday’s trading at $92.69 a share.

EOG Resources

This leading energy company shows up well on many Wall Street screens. EOG Resources Inc. (NYSE: EOG) is one of the largest independent exploration and production companies operating in the United States, Canada, Trinidad, the United Kingdom and China.

The company has a big well in Loving County in the Delaware Basin. Top analysts say the well ranks as one of the best they have ever seen in the basin, and it could easily impact other companies drilling in the region. EOG’s average dollar gross per well on a yearly basis is a stunning $4.3 million, which ranks third among all operators.

Shareholders in EOG are paid just a 0.62% dividend. Blair has a $145 price target for the shares, while the consensus target was last seen at $125.67. The stock closed trading most recently at $100.87 per share.

Parsley Energy

This is a smaller capitalization stock for aggressive investors to consider. Parsley Energy Inc. (NYSE: PE) is an oil and gas producer with 227,000 net acres in the Permian Basin. The majority of acreage sits on the Midland side of the basin, but the company also holds a small acreage position in the Delaware Basin.

The company had 222 million barrels of oil equivalent of proved reserves at the end of 2016, of which 61% was oil. Through strategic acquisitions and acreage swaps, it has grown its acreage position since its initial public offering and has over 7,900 horizontal locations across multiple prospective zones.

Parsley is a catalyst rich and a Permian Basin pure play. The company has some of the strongest wells in the basin, generating returns that are among the best in the industry. Parsley is also rapidly de-risking its drilling inventory and is well-positioned to continue to beat its strong growth projections.

Note that the $33 Baird price target is less than the consensus target of $37.84. The shares closed trading on Wednesday at $26.66 apiece.

RSP Permian

This company also remains a top pick across Wall Street. RSP Permian Inc. (NYSE: RSPP) is an independent oil and natural gas company focused on the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The vast majority of the company’s acreage is located on large, contiguous acreage blocks in the core of the Midland Basin, a subbasin of the Permian.

The company caught a string of upgrades from top Wall Street companies last year, and many have pointed to the possibility that the company could be a potential takeover candidate. Historically a vertical producer, the company has been transitioning to horizontal drilling in the past few years.

Here too the Baird price objective, set at $46, is less than the posted consensus price target, last seen at $51.48. The shares closed at $40.19 on Wednesday.

WPX Energy

This is a smaller capitalization company with solid upside potential, and it is another top Permian Basin play. WPX Energy Inc. (NYSE: WPX) is an independent oil and natural gas exploration and production company that engages in the exploitation and development of unconventional properties in the United States. Its principal areas of operation include the Permian Basin, the Williston Basin in North Dakota and the San Juan Basin in New Mexico and Colorado.

WPX is a premier Permian-levered operator with sector-leading debt-adjusted cash flow growth supported by strong execution in the core Delaware, all while trading at a Williston Basin valuations primarily due to its relatively high financial leverage.

WPX offers differentiated upside in a recovery case based on its asset quality/productivity and debt leverage. The company is the largest acreage holder of the publicly traded mid-caps and may have pound-for-pound the best position in the Delaware Basin.

Baird has set its price target at $21. The posted consensus price objective is $19.08, and the stock closed most recently at $14.25 a share.

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These five top stocks to buy all make good sense for investors looking to add energy, especially companies with Permian Basin exposure. The recent selling is offering some timely entry points for investors with a long-term horizon.

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