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.
8. Bristow Group Inc. (NYSE:VTOL)
Jason Bandel from Evercore ISI elevated the price target on Bristow Group Inc. (NYSE:VTOL) to $56 from $45 and reaffirmed an Outperform rating on February 27. According to the firm, 2026 is an “inflection point,” as the company is well-positioned for a substantial financial rebound. The analyst attributes this turnaround to the company’s ability to overcome capital challenges and strengthen its position as a multi-mission aviation services provider.
Earlier on February 25, Bristow Group Inc. (NYSE:VTOL) delivered its Q4 2025 financial results, reporting an EPS miss of $0.36. For the full year, the company showcased solid financial performance, achieving $1,525 million in total revenue, an increase of $75 million over 2024. Looking ahead, the company anticipates sustained revenue growth with strategic initiatives in advanced air mobility and government services. As said by CEO Chris Bradshaw,
“Our strategic investments in advanced air mobility position us as a leader in this emerging market.”
Overall, Bristow Group Inc. (NYSE:VTOL) is a consensus buy among all four analysts covering the stock. With a 1-year median price target of $59, the stock boasts an upside potential of 29.27%.
Bristow Group Inc. (NYSE:VTOL) is a Texas-based provider of vertical flight solutions to offshore energy enterprises and government institutions. Founded in 1948, the company operates through Offshore Energy Services, Government Services, and Other Services segments.
7. World Kinect Corporation (NYSE:WKC)
On March 3, Morgan Stanley cut the price target on World Kinect Corporation (NYSE:WKC) to $25, down from $27, and maintained an Underweight rating. Although the firm remains cautious about pullback risk for midstream equities in the near term, it believes that U.S. military action against Iran has increased uncertainty for global oil and gas markets.
On the same day, Investing.com reported that Wolfe Research has named ten small and mid-cap companies that differentiate themselves by delivering high dividend growth and solid unlevered free cash flow yields. World Kinect Corporation (NYSE:WKC) ranked sixth in the firm’s list, showcasing strong performance across the main metrics analyzed.
Previously, on February 19, World Kinect Corporation (NYSE:WKC) posted a Q4 EPS of $0.30, missing the forecasted $0.47 by $0.17, and revenue of $9.03 billion, relative to the consensus estimate of $9.41 billion. Since then, the stock has declined by approximately 8%. For FY26, the company expects an EPS of $2.20 to $2.40.
World Kinect Corporation (NYSE:WKC), incorporated in 1984, is a Florida-based energy management company operating in three segments: Aviation, Land, and Marine.
6. Vista Energy, S.A.B. de C.V. (NYSE:VIST)
On February 26, Morgan Stanley boosted the price target on Vista Energy, S.A.B. de C.V. (NYSE:VIST) to $74 from $73 and reiterated an Overweight rating. This revision is part of the firm’s model readjustment to better reflect Q4 2025 results, with limited changes to operating assumptions.
The price hike is largely to align with the Brent forward curve over the past five trading sessions, which is on average 6% to 9% higher this year and next. Morgan Stanley is looking ahead to the closing of the Bandurria Sur & Bajo del Toro transaction, along with fresh consolidated guidance, before including these in its projections.
On the same day, Vista Energy, S.A.B. de C.V. (NYSE:VIST) reported fourth-quarter results, achieving a 46% YoY rise in total revenues to $689 million. Despite this, the company’s EPS of $0.80 missed the consensus estimate of $1.15. Additionally, the company’s total production increased by 59% YoY, driven by enhanced well inventory and improved operational efficiency.
Vista Energy, S.A.B. de C.V. (NYSE:VIST) is a Mexican company that explores and produces oil and gas in Latin America. Founded in 2017, the company primarily has assets in the Vaca Muerta play of the Neuquina Basin, Argentina.
5. Venture Global, Inc. (NYSE:VG)
On March 3, BofA lifted the price target on Venture Global, Inc. (NYSE:VG) from $11 to $13 and reiterated a Buy rating, as reported by TheFly. The revised price is driven by the firm’s forecast update to better reflect fourth-quarter earnings and expanded margins in 2026/27, as well as an update to its valuation framework.
A day earlier, Venture Global, Inc. (NYSE:VG) reported its Q4 2025 earnings results, delivering an EPS of $0.41 and a revenue of $4.4 billion. Although the EPS figure missed the forecasts of $0.59, revenue came in significantly higher than last year’s $1.5 billion. What contributed to the revenue performance was the substantial rise in sales volumes, reflecting an increase of 273% relative to the previous year. Perhaps even more noteworthy is the company’s ability to benefit from the rise in liquefied natural gas (LNG) demand.
Looking ahead, Venture Global, Inc. (NYSE:VG) expects an EPS between $0.21 and $0.38 per quarter for FY26. Similarly, the company targets revenue in the range of $3.8 billion to $4.3 billion per quarter.
Venture Global, Inc. (NYSE:VG) is a Virginia-based company that develops and produces natural gas liquefaction and export projects. Founded in 2013, the company offers natural gas transport, shipping, and regasification services, as well as LNG.
4. NextDecade Corporation (NASDAQ:NEXT)
After NextDecade Corporation (NASDAQ:NEXT) announced its fourth-quarter 2025 results on March 2, the stock rose around 4% by the close of March 3. As evidenced by its results, the company demonstrated substantial advancements in its financial and operational strategies, particularly in the LNG project at Rio Grande.
The company remains focused on expanding LNG production capacity, while raising funds and pushing construction initiatives, which positions NextDecade Corporation (NASDAQ:NEXT) well in the LNG space. As said by CEO Matt Schatzman,
“Our fully funded trains 4 and 5 mark a significant milestone in our journey to becoming a leading LNG provider. We are committed to delivering on our promises and maximizing shareholder value.”
Looking ahead, NextDecade Corporation (NASDAQ:NEXT) expects $800 million annually in distributable cash flows at $5 per MMBtu cargo margin. What’s projected to improve revenue and profitability are the company’s strategic initiatives, particularly new SPAs amounting to 7.2 million tons per annum.
Overall, NextDecade Corporation (NASDAQ:NEXT) has mixed analyst sentiment, with half of the analysts recommending buying the stock and the other half neutral on the stock. With a 1-year median price target of $7, the stock has an upside potential of 28.91%, as of March 3.
NextDecade Corporation (NASDAQ:NEXT) is a Texas-based energy company that develops activities associated with the liquefaction of natural gas. Incorporated in 2010, the company focuses on the Grande liquefied natural gas (LNG) terminal facility and third-party industrial facilities.
3. SM Energy Company (NYSE:SM)
With rising tensions in the Middle East, analysts at KeyBanc Capital Markets remain positive on U.S. oil producers. As reported by Investing.com on March 2, the analysts assert that the “secular trade” for oil-weighted equities remains unchanged, despite the intensifying crisis in Iran. The firm has included SM Energy Company (NYSE:SM) in the list of seven undervalued energy stocks amid the conflict.
According to the analysts, SM Energy Company (NYSE:SM) remains an “Overweight” favorite, entering 2026 with a 54% oil mix. With 47% of its oil production hedged, the company retains significant “dry powder” to capitalize on the anticipated upward adjustments in oil price forecasts from sell-side analysts, KeyBanc noted.
Earlier on February 26, SM Energy Company (NYSE:SM) reported its fourth-quarter 2025 earnings. The company delivered EPS of $0.83 and a revenue of $705 million, missing the forecasted $0.89 EPS and $774.49 million revenue. Despite this, the company achieved solid operating cash flow, adjusted EBITDAX, and production volumes throughout last year.
SM Energy Company (NYSE:SM), incorporated in 1908, is a Colorado-based independent energy company specializing in oil, gas, and natural gas liquids.
2. Antero Resources Corporation (NYSE:AR)
On February 27, Gabriele Sorbara, an analyst at Siebert Williams Shank & Co., reiterated a Buy rating on Antero Resources Corporation (NYSE:AR) and set a price target of $48. This reflects an upside potential of approximately 30%.
Previously, on February 13, Josh Silverstein from UBS slightly trimmed the price target on Antero Resources Corporation (NYSE:AR) to $45 from $46 and maintained a Buy rating, according to TheFly.
A day earlier, Antero Resources Corporation (NYSE:AR) announced fourth-quarter results for 2025. The company delivered an EPS of $0.62 and a revenue of $1.41 billion, outperforming estimates of $0.51 and $1.32 billion, respectively. This beat was driven by strategic acquisitions and operational efficiencies. Highlighting the company’s capital efficiency, CEO Michael Kennedy said,
“We are the ones that should grow. We have the most capital-efficient program.”
The company’s successful acquisition of HG Energy expanded its core inventory life by five years due to the addition of significant acreage and drilling locations. Perhaps even more interesting is the company’s focus on enhancing dry-gas exposure and operational excellence, which has led to record-setting efficiencies. Antero Resources Corporation (NYSE:AR) continues to take a flexible approach to growth, with solid regional natural gas demand and prospects in power and industrial gas supply.
Antero Resources Corporation (NYSE:AR) is a Colorado-based independent oil and natural gas company providing natural gas, natural gas liquids (NGLs), and oil properties. Incorporated in 2002, the company operates through three segments: Exploration and Production, Marketing, and Equity Method Investment in Antero Midstream.
1. Expand Energy Corporation (NASDAQ:EXE)
On February 23, Wells Fargo lifted the price target on Expand Energy Corporation (NASDAQ:EXE) to $123, up from $120, and reiterated an Equal Weight rating. The analyst says that the company aims for 20c/mcf realization benefit from supply deals and end-user delivery in the long haul. This translates to a $500M annual structural increase in EBITDA, the firm noted, adding that the need to secure supply agreements and provide greater visibility to customers has guided the decision to relocate the headquarters to Houston.
Earlier on February 18, Benchmark maintained a Buy rating on Expand Energy Corporation (NASDAQ:EXE) with a price target of $112. This reaffirmation comes after the company’s fourth-quarter earnings report, in which it delivered an adjusted EBITDA of $1.425 billion, above the consensus estimate but under the firm’s projection.
What’s interesting is that Expand Energy Corporation (NASDAQ:EXE) allocated $75 million to the Western Haynesville appraisal in 2026. The guidance for the current year is driven by Marcellus growth, with production anticipated to climb by 200 mmcf/d by year-end.
Expand Energy Corporation (NASDAQ:EXE) is an Oklahoma-based independent natural gas production company. Founded in 1989, the company specializes in properties to produce oil, natural gas, and natural gas liquids.
While we acknowledge the potential of EXE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EXE and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
