10 Most Undervalued Oil Stocks To Buy According To Analysts

2. Chevron Corporation (NYSE:CVX)

Forward Price-to-Earnings Ratio: 14.84

Analyst Upside: 9.95%

Number of Hedge Fund Holders: 81

Chevron Corporation (NYSE:CVX) is one of the 10 most undervalued oil stocks to buy according to analysts. BofA maintained its Buy rating on Chevron Corporation (NYSE:CVX) and reduced its price target from $172 to $170 back on May 23. The firm, which renewed its refiners projections and observes that they are below consensus for 2025 and 2026 EBITDA, indicates that its price targets relating to the “Majors” like Chevron are “little changed.” That said, BofA adds that it updated its targets for refiners, as they no longer include a worse case recessionary environment.

In another vein, a $53 billion merger involving Chevron Corporation (NYSE:CVX) and Hess Corporation has been postponed due to an arbitration dispute that Exxon Mobil and China’s CNOOC, Hess’ Guyana partners, filed.

In order to acquire Hess’ interest in the Guyana field, Exxon and CNOOC assert that they have a contractual right of first refusal. Meanwhile, Hess and Chevron contend that the clause isn’t applicable to the sale of the entire company. Announced in October 2023, the anticipated acquisition is one of the largest transactions in the oil industry in recent memory. It is essential to Mike Wirth, the CEO of Chevron Corporation (NYSE:CVX), and his plan to boost the oil company’s bottom line.

Chevron Corporation (NYSE:CVX), based in San Ramon, California, is a major American global energy company that specializes in the oil and gas industry. Founded as the Standard Oil Company of California, it is the second-largest direct descendant of Standard Oil.