The "Fast Money" traders debated which energy stocks have room to the upside, as the sector has already rallied 22 percent this year.
Trader Tim Seymour said Anadarko Petroleum is a stock that has "scalability" as crude prices trade in the $52 to $54 range. He said it's one of the few companies in the sector that is developing free cash flow now and is likely to take market share.
Trader Guy Adami said he also likes Anadarko and said the stock could move up into the the $80 range. Anadarko shares closed at $68.29 on Monday.
For investors that believe that the bull market will continue, trader Karen Finerman said the VanEck Vectors Oil Services ETF is a good choice for those who don't want to pick an individual company. She said the ETF is more "turbocharged" than the broader energy sector ETF and the underlying commodities.
While some oil stocks may start to consolidate gains, trader Dan Nathan said investors should look at companies like Schlumberger, which has a good dividend yield. He said the stock could break out if crude prices hold at current levels.
Tim Seymour is long ABX, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD,MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM, short: EEM, SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM
Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.
Dan Nathan is long XHB Jan put spread, XLU Dec call spread, XLK Jan Put spread, XRT Jan put spread, MCD Dec/Feb put calendar.
Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.