10 Best Low Cost Stocks to Buy According to Hedge Funds

​8. Shell plc (NYSE:SHEL)

Forward P/E Ratio: 7.87

Number of Hedge Fund Holders: 45

Shell plc (NYSE:SHEL) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. On May 27, Piper Sandler released a note for its clients mentioning that it expects the Strait of Hormuz to remain closed for several more months. The Strait of Hormuz is a critical pathway through which roughly 20% of the world’s crude oil shipments pass.

​Piper Sandler has very little confidence that commercial traffic through the Strait will recover to half of pre-war levels within the next month. This outlook comes despite President Trump’s repeated claims that a peace deal with Iran is close. As a result, the firm expects oil shortages to intensify and crude prices to hit new highs this summer. West Texas Intermediate crude already reached $120 a barrel when the Iran conflict began.

​The firm has a Buy rating on Shell plc (NYSE:SHEL) with a price target of $106, while the stock currently trades at around $84. Piper Sandler believes prices could climb beyond $120 a barrel in the coming months. Moreover, the firm’s energy and macroeconomics teams warned that the situation in the Middle East remains far from resolved.

​Shell plc (NYSE:SHEL) has benefited from higher global energy prices. During the recently reported first quarter 2026 earnings, the company posted the highest quarterly adjusted earnings in two years of $6.92 billion, ahead of the expectations of $6.36 billion.

​Shell PLC (NYSE:SHEL) is a global integrated energy company that operates across the entire oil and gas value chain, from finding and extracting crude oil to refining it into everyday products and distributing them to consumers.

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