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.
9. Northern Oil and Gas, Inc. (NYSE:NOG)
YTD Decline: -22.93%
Analyst Upside: 27.40%
Number of Hedge Fund Holders: 34
Northern Oil and Gas, Inc. (NYSE:NOG) is one of the most oversold energy stocks to buy right now. On July 17, Piper Sandler raised the firm’s price target on Northern Oil and Gas, Inc. (NYSE:NOG) to $31 from $30, while keeping a Neutral rating on the shares.
The firm told investors that the E&P investing environment poses challenges coming out of Q2 with a backdrop entailing heightened geopolitical risk and a volatile oil price environment offset by higher OPEC+ supplies. It also stated that stubbornly high supplies and strong inventory builds offset strong secular gas-demand trends.
Piper further told investors that the long-term gas demand story underwent a shot in the arm on the back of the PA Power and Innovation Summit, driven by data center buildout and power generation, with $90B of announcement investment in power and data center buildout. The firm added that it prefers a more defensive positioning in oil.
Northern Oil and Gas, Inc. (NYSE:NOG) acquires, develops, explores, and produces natural gas and crude oil properties. Its focus is on the Bakken and Three Forks formation within the Williston Basin in North Dakota and Montana.
8. Kodiak Gas Services, Inc. (NYSE:KGS)
YTD Decline: -23.29%
Analyst Upside: 37.07%
Number of Hedge Fund Holders: 34
Kodiak Gas Services, Inc. (NYSE:KGS) is one of the most oversold energy stocks to buy right now. On July 21, RBC Capital analyst Elvira Scotto maintained a Buy rating on Kodiak Gas Services, Inc. (NYSE:KGS) and set a price target of $42.00.
In other news, Kodiak Gas Services, Inc. (NYSE:KGS) announced on July 24 that its board of directors declared a cash dividend of $0.45 per share of common stock for Q2 2025, payable on August 14, 2025, to all stockholders of record as of the close of business on August 4.
Kodiak Gas Services, LLC, a subsidiary of Kodiak, also declared a distribution of $0.45 per unit for Q2 2025, payable on August 14, 2025, to all unitholders of record of Kodiak Services on August 4, 2025.
Kodiak Gas Services, Inc. (NYSE:KGS) operates contract compression infrastructure in the US, operating as a link in the infrastructure that allows the production and transportation of oil and natural gas. Its operations are divided into the Compression Operations and Other Services segments.
7. SM Energy Company (NYSE:SM)
YTD Decline: -28.17%
Analyst Upside: 38.51%
Number of Hedge Fund Holders: 37
SM Energy Company (NYSE:SM) is one of the most oversold energy stocks to buy right now. On July 23, Susquehanna analyst Biju Perincheril maintained a Hold rating on SM Energy Company (NYSE:SM) and set a price target of $27.00.
SM Energy Company (NYSE:SM) reported net production of 17.8 MMBoe, or 197.3 MBoe/d, at 53% oil or 103.7 MBbls/d, in fiscal Q1 2025, at the high end of guidance. Management attributed this performance to the company’s Uinta Basin assets exceeding expectations.
SM Energy Company (NYSE:SM) also reported a 36% growth in total daily production and a 63% rise in daily oil production in Q1 2025 compared to the same quarter last year. This growth was driven primarily by the addition of the Uinta Basin assets.
SM Energy Company (NYSE:SM) is an independent energy company that engages in the exploration, development, acquisition, and production of gas, oil, and natural gas liquids.
6. Viper Energy, Inc. (NASDAQ:VNOM)
YTD Decline: -21.20%
Analyst Upside: 39.33%
Number of Hedge Fund Holders: 40
Viper Energy, Inc. (NASDAQ:VNOM) is one of the most oversold energy stocks to buy right now. On July 17, Piper Sandler raised the firm’s price target on Viper Energy, Inc. (NASDAQ:VNOM) to $66 from $65 while keeping an Overweight rating on the shares.
The firm told investors that the E&P investing environment is continuing to be challenging coming out of the Q2 earnings season, as it is marked with rising geopolitical risk and a volatile oil price environment offset by higher OPEC+ supplies.
It added that strong secular gas-demand trends have also been offset by strong inventory builds and stubbornly high supplies. The firm also stated that it prefers a more defensive positioning in oil.
Headquartered in Midland, TX, Viper Energy, Inc. (NASDAQ:VNOM) acquires, owns, and exploits natural gas and oil properties in North America.
5. YPF Sociedad Anónima (NYSE:YPF)
YTD Decline: -21.92%
Analyst Upside: 40.06%
Number of Hedge Fund Holders: 23
YPF Sociedad Anónima (NYSE:YPF) is one of the most oversold energy stocks to buy right now. On July 1, Bank of America Securities analyst Leonardo Marcondes reiterated a Buy rating on YPF Sociedad Anónima (NYSE:YPF) and set a price target of $42.00.
On July 22, Moody’s Ratings upgraded YPF Sociedad Anónima’s (NYSE:YPF) senior unsecured and secured notes ratings to ‘B2’ from ‘Caa1’, reporting a stable outlook.
The upgrade includes the Corporate Family Rating and suggests optimism for YPF Sociedad Anónima’s (NYSE:YPF) financial stability, potentially boosting its attractiveness to investors and enhancing its reputation.
YPF Sociedad Anónima (NYSE:YPF) explores, produces, and distributes oil and gas. The company operates in the following segments: Upstream, Gas and Power, Downstream, Central Administration and Other.
4. Excelerate Energy, Inc. (NYSE:EE)
YTD Decline: -20.96%
Analyst Upside: 42.38%
Number of Hedge Fund Holders: 22
Excelerate Energy, Inc. (NYSE:EE) is one of the most oversold energy stocks to buy right now. Barclays analyst Theresa Chen maintained a Buy rating on Excelerate Energy, Inc. (NYSE:EE) on July 9, setting a price target of $32.00.
Excelerate Energy, Inc. (NYSE:EE) reported $52.1 million in reported net income for fiscal Q1 2025, while reported adjusted net income for the quarter reached $55.6 million.
The company raised its full-year 2025 adjusted EBITDA guidance, expecting it to be in the $345 million to $365 million range. Excelerate Energy, Inc. (NYSE:EE) also declared a quarterly cash dividend of $0.06 per share, or $0.24 per share on an annualized basis, payable on June 5.
Excelerate Energy, Inc. (NYSE:EE) provides liquefied natural gas (LNG) solutions. The company’s services include LNG and natural gas supply, floating storage and regasification units, and LNG import infrastructure development.
3. Civitas Resources Inc. (NYSE:CIVI)
YTD Decline: -31.38%
Analyst Upside: 46.64%
Number of Hedge Fund Holders: 41
Civitas Resources Inc. (NYSE:CIVI) is one of the most oversold energy stocks to buy right now. On July 8, RBC Capital analyst Scott Hanold lowered the firm’s price target on Civitas Resources Inc. (NYSE:CIVI) to $36 from $40 while keeping a Sector Perform rating on the shares.
The analyst told investors in a research note that the firm is revising its model to include revisions on commodity prices, with RBC’s WTI outlook having dropped to $62.25/barrel in 2025 from $64.19 and $52.50/barrel in 2026 from $57.12.
RBC’s Henry Hub outlook decreased to $3.84/Mcf in 2025 from $4.12 Mcf but rose to $4.00/Mcf for 2026 from $3.87/Mcf. These trends point towards expected improvement in balances, primarily because of more moderate associated gas growth and increasing LNG exports.
Civitas Resources Inc. (NYSE:CIVI) is an independent exploration and production company that acquires, develops, and produces crude oil and associated liquids-rich natural gas. Its operations take place primarily in the Denver-Julesburg Basin in Colorado and the Permian Basin in Texas and New Mexico.
2. Vista Energy S.A.B. de C.V. (NYSE:VIST)
YTD Decline: -18.32%
Analyst Upside: 53.74%
Number of Hedge Fund Holders: 21
Vista Energy S.A.B. de C.V. (NYSE:VIST) is one of the most oversold energy stocks to buy right now. On July 10, Bank of America Securities analyst Leonardo Marcondes reiterated a Buy rating on Vista Energy S.A.B. de C.V. (NYSE:VIST) and set a price target of $75.00.
The analyst based the rating on Vista Energy S.A.B. de C.V.’s (NYSE:VIST) strategic acquisitions and solid production growth. He stated that the company’s recent consolidation of PEPASA and the increased stake in LACh are significant factors behind an increase in production levels, with a notable growth in both natural gas and oil outputs.
Marcondes reasoned that the expansion aligns with Vista Energy S.A.B. de C.V.’s (NYSE:VIST) growth profile, suitably positioning it within the Vaca Muerta region that is known for its potential in the energy sector.
The firm is thus optimistic about Vista Energy S.A.B. de C.V.’s (NYSE:VIST) future despite a negative free cash flow to equity in the short term, largely attributed to working capital consumption and tax payments.
Vista Energy S.A.B. de C.V. (NYSE:VIST) is an oil and gas company involved in the production and exploration of oil and gas. Its operations are divided into the Mexico and Argentina geographical segments, and its assets include Vaca Muerta.
1. Crescent Energy Company (NYSE:CRGY)
YTD Decline: -36.89%
Analyst Upside: 57.18%
Number of Hedge Fund Holders: 34
Crescent Energy Company (NYSE:CRGY) is one of the most oversold energy stocks to buy right now. On July 21, Evercore ISI analyst Stephen Richardson maintained a Buy rating on Crescent Energy Company (NYSE:CRGY) and set a price target of $11.00.
Crescent Energy Company (NYSE:CRGY) delivered solid performance in fiscal Q1 2025, with all key metrics exceeding and meeting guidance expectations. The company generated $337 million in operating cash flow and $242 million in levered free cash flow, which implies an annualized yield of around 45%.
Crescent Energy Company (NYSE:CRGY) also continued to drive operating efficiencies, improving South Texas drilling, completion, and facilities (DC&F) expenses by around 10% compared to 2024.
Crescent Energy Company (NYSE:CRGY) is a differentiated US energy company with operations focused on Texas and the Rockies, with active development in the Eagle Ford and Uinta basins. The company is also involved in the operation of conventional assets in Wyoming, where it focuses on carbon capture, use, and storage (CCUS).
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