In this article, we will look at the 11 Most Oversold Energy Stocks To Buy Right Now.
On July 15, CNBC’s Brian Sullivan and Energy Secretary Chris Wright sat down at the Pennsylvania Energy and Innovation Summit at Carnegie Mellon University to talk about the multibillion-dollar investment commitment from the private sector in Pennsylvania and how it would help improve energy infrastructure.
Talking about how a lot of capital is coming into the energy sector from the private sector, Wright said that businesses and consumers should direct that capital, which, according to him, is a great thing about the Trump administration.
READ ALSO: 10 Most Profitable Biotech Stocks to Invest in Now and Top 15 Low Volatility Healthcare Stocks to Buy Now.
However, he added that his suspicion is that large data centers would be built in the state, as Pennsylvania is an energy powerhouse, and its production is only limited by its ability to get it out to marketplaces through pipelines.
He thus added that it is easy to ramp up Pennsylvania natural gas production, generate electricity, build data centers and semiconductor manufacturing, and build any kind of manufacturing in the state.
With these trends in view, let’s look at the most oversold energy stocks to buy right now.
A technician wearing a safety vest standing alongside a commercial-scale energy storage stack.
Our Methodology
We used stock screeners to compile a list of energy stocks that experienced significant YTD performance declines and selected the top 11 stocks with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on July 25.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Most Oversold Energy Stocks To Buy Right Now
11. Transocean Ltd. (NYSE:RIG)
YTD Decline: -18.40%
Analyst Upside: 20%
Number of Hedge Fund Holders: 32
Transocean Ltd. (NYSE:RIG) is one of the most oversold energy stocks to buy right now. In a report released on July 18, Eddie Kim from Barclays maintained a Buy rating on Transocean Ltd. (NYSE:RIG) with a price target of $3.50.
Transocean Ltd. (NYSE:RIG) reported $14 million, $0.01 per diluted share, in its fiscal Q1 2025 results for unfavorable discrete tax items, net. Adjusted net loss for the quarter was $65 million, or loss of $0.10 per diluted share, after consideration of these discrete items.
Transocean Ltd. (NYSE:RIG) provides offshore contract drilling services for oil and gas wells. The company also owns and operates offshore drilling fleets such as ultra-deepwater, deepwater, harsh environment, and midwater rigs.
10. ONEOK, Inc. (NYSE:OKE)
YTD Decline: –18.78%
Analyst Upside: 22.64%
Number of Hedge Fund Holders: 42
ONEOK, Inc. (NYSE:OKE) is one of the most oversold energy stocks to buy right now. On July 22, Raymond James analyst J.R. Weston lowered the firm’s price target on ONEOK, Inc. (NYSE:OKE) to $110 from $115, keeping an Outperform rating on the shares.
The analyst told investors in a research note that the company’s story in Q2 is the rebound off of challenging weather and volume impacts in Q1. ONEOK, Inc. (NYSE:OKE) reported $691 million in net income in fiscal Q1 2025, with net income attributable to the company reaching $636 million, resulting in $1.04 per diluted share.
ONEOK, Inc. (NYSE:OKE) gathers, fractionates, processes, transports, stores, and markets natural gas. The company’s operations are divided into the following segments: Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines.