10 Most Undervalued Energy Stocks to Buy According to Hedge Funds

5. Antero Resources Corporation (NYSE:AR)

No. of Hedge Fund Holders: 66

Forward P/E Ratio as of May 2: 11.12

Next on our list of the Most Undervalued Energy Stocks is Antero Resources Corporation (NYSE:AR), an independent natural gas and liquids company operating in the Appalachian Basin. The company is the most integrated natural gas and NGL business in the US and one of the largest suppliers to the country’s LNG market.

Despite reporting strong growth in Q1 2025, Antero Resources Corporation (NYSE:AR) fell short of estimates as its adjusted EPS of $0.78 missed consensus by $0.1. The company’s revenue of $1.35 billion also slightly fell below expectations by $44.54 million, despite shooting up by over 20.5% YoY. The strong growth was driven by a surge in the sales of natural gas and NGLs. AR also reported a substantial increase in net income, which climbed to $208 million, compared to $22.73 million in the previous year, reflecting improved operational efficiencies and cost management.

Antero Resources Corporation (NYSE:AR) remains financially strong, generating free cash flow of $337 million during the quarter, significantly up from the $15.54 million it reported in the year-ago period. The company also reduced its debt by over $200 million in Q1 and repurchased $92 million of stock. Antero still has approximately $1 billion of capacity remaining on its current share repurchase program.

With 14 billionaire holders in the IM database at the end of Q4 2024, Antero Resources Corporation (NYSE:AR) is ranked among Billionaire’s 15 Favorite Oil and Gas Stocks Right Now.