Frontline

FRO

Market cap $8.3B

Investors have experienced the market's recent choppiness and are growing concerned the easy gains from low energy costs are evaporating.

Oil prices just delivered their biggest one-day jump in six years.

Frontline, the world's largest operator of VLCC oil tankers, is positioned to benefit from the ongoing Strait of Hormuz crisis. As VLCC charter rate spike, Frontline, with its high amount of operating leverage, is poised to experience a big jump in profitability this year.

Frontline plc operates in the highly volatile energy shipping sector, with dual listings on the NYSE and Oslo for FX diversification. Investing in FRO requires abandoning traditional value investing and focusing on commodity cycles, sector trends, and shorter-term forecasting. Shipping sector investments demand comfort with prolonged downturns and a willingness to hold through extended cyclical lows.

Frontline is rated a "Buy," supported by surging VLCC rates, robust technicals, and strong earnings momentum. Q4 revenue rose 47% YoY to $625 million, with adjusted profits jumping to $230.4 million, driven by higher TCE earnings and lower expenses. FRO locked in the Q1 spot, TCE rates at elevated levels, forecasts over 100% EPS growth, and offers a 12.8% forward dividend yield.

Crude oil stocks stand to gain from surging prices and supply chain disruptions, offering investors defensive, short-term tactical buying opportunities. The goal of defensive trading is to preserve capital and mitigate risk until more favorable market conditions return. Explore the ‘Strong Buy' recommendations in this article, which are up an average +60% YTD, trade at a discount, and offer strong fundamentals that may benefit from the crude oil trade.

The de facto closure of the Strait of Hormuz amid the Iran conflict sent oil prices surging, before a dramatic reversal when President Donald Trump said the conflict might end. Stocks fell as oil prices surged amid concerns that rising energy costs could fuel inflation, reducing the odds of near-term interest rate cuts. Companies that stand to benefit from oil supply disruptions include integrated energy giants and companies involved in oil exploration, production, and shipping.

Oil prices have surged dramatically in early 2026, driven by the escalating Iran conflict and fears of Strait of Hormuz disruption.

We ran a screen on dividend stocks with yields above 4%, trading on U.S. exchanges, with market caps of at least $500 million, ranked by 2026 price performance.

The U.S-Iran conflict could cause rates to rise, but shares of Frontline, DHT Holdings, and others have already rallied.