Long-beleaguered crude oil made an unexpected comeback last week, with West Texas Intermediate (WTI) crude zooming from around $38 per barrel to above $46 yesterday. If we adhere to the adage that it’s better late than never, we might see brighter days this week for investors in this space.

The price of WTI crude oil soared $2.66 or 5.9% to $45.22 per barrel on Friday, while Brent crude surged $2.49 or almost 5% to $50.05 per barrel. The uptrend followed Thursday’s WTI crude’s largest one-day percentage gain since Mar 12, 2009. On Thursday, bucking market pessimism, WTI crude oil soared $3.96 or 9.3% to $42.56 per barrel. On the same day, Brent crude prices also posted its largest one-day percentage gain since Dec 31, 2008.

The surprise was complete for the broader market which was discounting the commodity owing to the latest U.S. Energy Department's weekly inventory release which showed rising inventories at the Cushing delivery hub. Moreover, the report had revealed that refined product supplies – gasoline and distillate – increased from their previous week levels. The bearish mood was compounded by the Venezuelan President Nicolas Maduro’s opinion that the commodity is slated to fall to $30 per barrel or less.

Proxy Revival?

The question which now comes first to the minds of investors ravaged by the year-long crude carnage is the sustainability of the revival. U.S. crude futures witnessed a prolonged fall from the skies since Jun 2014 ($107 per barrel) to the deep pit of sub-$40 per barrel until recently. The cascade was due to oversupply worries and uninspiring demand growth.

Crude oil prices, which are now moving north, may again be troubled by a potential Federal rate hike in September. Renewed rate hike jitters came right after strong domestic GDP recovery in the second quarter. Per the U.S. Department of Commerce in its second GDP estimate last week, the gross domestic product expanded at a 3.7% clip versus a 2.3% rate reported in July.

Also, per Energy Information Administration (EIA) latest release based upon a new metric which consists of expanded survey, oil production for the first six months of 2015 averaged 9.4 million barrels per day. The new system collects monthly oil production data from a sample of operators of oil and natural gas wells in 15 individual states and the federal Gulf of Mexico; production from all remaining states and the federal Pacific is reported collectively in an "other states" category. Per EIA this approach improves estimates by representing more than 90% of oil production in the US.

The latest release oil production for June was 9.3 million barrels per day versus 9.4 million barrels per day in May.

Lastly ongoing major economic extreme market volatility and continued bad news out of China and Brazil (the world's second-and seventh-largest economies, respectively), will have an impact on the global economy, thereby dictating the demand for crude.

Now What?

The current change in demand-supply dynamics put energy players on the radar of investors who are scouring for a lift in the fortunes of the space. So long, the sector was ravaged by falling realizations from upstream operations and a high level of inventory which showed no decline despite a marginally lower domestic oil rig count as reported by Baker Hughes Inc. (BHI - Analyst Report). Now, investors can only hope that the rise in crude price level does not end up being a short-term phenomenon.

4 Energy Growth Picks

Smart investors should ride on this surge before the wave comes crashing down again. For that, we have identified four energy stocks based on their favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 (Buy) – and Growth Style Score ‘A’ or ‘B’ using our new style score system and their current valuation.

A stock with such a combination has incredible potential for the near term. So stick to the script and buy these stocks to maximize your gains.

Alon USA Partners, LP (ALDW - Snapshot Report)

Alon USA Partners, LP owns and operates a crude oil refinery in Big Spring, TX with a crude oil throughput capacity of 73,000 barrels per day. Alon Partners refines crude oil into finished products, which are marketed primarily in West Texas, Central Texas, Oklahoma, New Mexico and Arizona through its wholesale distribution network to both Alon Energy's retail convenience stores and other third-party distributors.

It offers a great investment potential and can be an impressive choice for growth investors, given its Growth Score of “A” and Zacks Rank #1. Positive earnings estimate revisions along the way boosted investor confidence. The stock surged more than 16% in the past week to close at $25.58. The company has delivered positive earnings surprises in the last four quarters, with an average surprise of 33.10%.

SolarEdge Technologies, Inc. (SEDG - Snapshot Report)

SolarEdge Technologies, Inc. designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, Europe, the United States, and internationally.

It is a solid bet with a Growth Score of “A” and a Zacks Rank #1. Positive earnings estimate revisions along the way fueled the bullishness. The stock surged more than 13% in the past week to close at $25.41. Despite this, the closing price is more than 69% lower than its 52- week high price of $43.00. The company has delivered positive earnings surprises in the last two quarters with an average surprise of 112.03%.

Alon USA Energy, Inc. (ALJ - Snapshot Report)

Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products, operating primarily in the Southwestern and South Central regions of the United States. Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt in the State of Texas.

It is yet another stock to invest given its Growth Score of “A” and a Zacks Rank #1.  Estimates moved north, which is a positive. The stock surged 2.05% in the last trading session to close at $18.45. However, its closing price is more than 25% lower than its 52-week high price of $23.29. The company has delivered positive earnings surprises in the last four quarters, with an average surprise of 41.42%.

Valero Energy Corporation (VLO - Analyst Report)

Valero Energy Corporation owns and operates refineries in the United States and Canada with a combined throughput capacity of approximately two million BPD, making it one of the nation's top refiners of petroleum products. Valero is also one of the leading retail operators in the country, with retail outlets in the United States and Canada under various brand names including Diamond Shamrock, Ultramar, Valero, Beacon and Total.

Investors can count on the stock because it has a Growth Score of “A” and a Zacks Rank #2. Positive earnings estimate revisions are encouraging. The stock surged 2.8% in the last trading session to close at $59.01. The closing price was over 21% off its 52-week high price of $71.50. The company has delivered positive earnings surprises in the last four quarters, with an average surprise of 24.12%.

Bottom Line

Looking at the strong growth fundamentals of these companies, we expect them to beat all odds and emerge as winners. So take advantage of these stocks, which have proved already their mettle in a sticky situation. These picks have rocketed to fame with grand performances and hold even greater promise for the coming days.