In this article, we will take a look at the best affordable energy stocks to buy.
Energy markets rarely move in straight lines. From geopolitical tensions to fluctuating demand dynamics and oil price swings, the energy sector is among the most vulnerable to changing macroenvironmental conditions. Yet amid this uncertainty lies a compelling opportunity, especially for investors focused on a sector central to the global economy.
According to NBC News, U.S. equities declined, and energy prices rose on March 3 amid the rising tensions with Iran. Following a significant jump the day before, energy prices continue to rise, with the international crude oil benchmark reporting a sharp increase to its highest level since July 2024.
Later, US President Trump said that he has asked the U.S. Development Finance Corp. to provide “political risk insurance and guarantees for the Financial Security of ALL Maritime Trade, especially Energy, traveling through the Gulf.” He also added that if need be, the United States Navy will also escort tankers through the Strait of Hormuz. This announcement led oil stocks to reverse their gains for that day and then resume climbing. Patrick De Haan, an analyst at GasBuddy, expects the prices to hit $3.20 per gallon by the end of the week, NBC News noted.
Given the current global energy landscape, we have compiled a list of the best affordable energy stocks to buy.
Photo by Robin Sommer on Unsplash
Our methodology
For this article, we began by filtering for stocks in the energy sector with a forward P/E ratio of under 15. Next, we shortlisted stocks with an upside potential of more than 10% and the highest number of hedge fund holdings. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are then ranked by the number of hedge fund holdings, based on Insider Monkey’s database, as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. YPF Sociedad Anónima (NYSE:YPF)
On February 27, Morgan Stanley elevated the price target on YPF Sociedad Anónima (NYSE:YPF) to $47 from $45 and maintained an Equalweight rating. The firm highlights that the company’s emphasis on shale growth represents the basis of the upward revision in price target.
Morgan Stanley believes YPF Sociedad Anónima (NYSE:YPF) will be well-positioned as a leaner organization after the completion of conventional asset disposals, thus allowing the company to expand investments in shale oil. While raising concerns about capital allocation in the medium-term, the firm said that substantial long-term LNG investments may restrict free cash flow conversion to future dividends.
On the same day, YPF Sociedad Anónima (NYSE:YPF) delivered its Q4 and full-year 2025 financial results, demonstrating robust operational resilience amid a fluctuating commodity price environment. What stood out most was the company’s record-high $5 billion EBITDA, the highest in a decade. This was achieved despite a 4% annual revenue decline due to a 15% dip in Brent crude prices.
YPF Sociedad Anónima (NYSE:YPF) is an Argentina-based energy company specializing in upstream and downstream oil and gas activities. Founded in 1977, the company also owns refineries, maintains terminal facilities, and participates in power generation plants, among others.
9. Atlas Energy Solutions Inc. (NYSE:AESI)
On February 26, Eddie Kim from Barclays lifted the price target on Atlas Energy Solutions Inc. (NYSE:AESI) to $8 from $7 and reiterated an Underweight rating. In a research note, the analyst said that the company’s shares sold off due to a combination of three factors, including no fresh power announcements, ongoing headwinds in the proppant division, and uncertainty surrounding volumes in the latter half of this year. The firm further added that it believes the first quarter will be the weakest period of the year.
A day earlier, Stifel also raised the price target on Atlas Energy Solutions Inc. (NYSE:AESI) to $14, up from $13, and maintained a Buy rating. The company delivered Q4 2025 EBITDA that surpassed the firm’s forecast by an impressive 38% and the consensus estimate by 30%.
According to Stifel, the results, commentary, and guidance matched the projections when factoring in the negative Q1 2026 weather impact. Stifel attributes the price weakness to the absence of a previously anticipated Power contract, adding that they view the company’s growth and expanded deployment estimates as the main growth catalyst for this year and the next.
Atlas Energy Solutions Inc. (NYSE:AESI) is a Texas-based producer of proppants and provider of logistics and distributed power solutions. Founded in 2017, the company operates through two segments: Sand and Logistics, and Power.
