11 Undervalued Stocks with Biggest Upside Potential

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​7. Matador Resources Company (NYSE:MTDR)

Forward P/E Ratio: 7.56

Number of Hedge Fund Holders: 32

Analyst Upside Potential: 35.59%

​Matador Resources Company (NYSE:MTDR) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Peyton Dorne from UBS reiterated a Hold rating on the stock but raised the price target from $46 to $50. Earlier on December 8, Zach Parham from J.P. Morgan also reiterated a Buy rating on the stock but lowered the price target from $57 to $52.

Zach Parham of J.P. Morgan noted that the reduced price target reflects the firm’s updated 2026 outlook on the exploration and production space. He added that 2026 is characterized by supply-side risks for oil and liquids as the long-awaited demand inflection for natural gas. Moreover, Parham believes that the crude oil sector faces challenges from a significant oversupply and a potential end to the Russia-Ukraine conflict in 2026, both pressuring prices lower.

That said, the company made two positive financing announcements on December 11. Firstly, the company announced the successful unanimous redetermination by its 19-bank group at $3.25 billion, under Matador’s reserves-based loan credit facility. Secondly, management also announced that 16 lenders under San Mateo Midstream, LLC’s revolving credit facility also unanimously agreed to increase their commitments by $1.10 billion, reflecting an increase of $250 million from the previous commitment of $850 million. ​

Notably, management noted paying off $311 million in RBL debt during the first 9-months of 2025, bringing its balance to $285 million as of September 30. As a result, the company lowered its Debt-to-EBITDA to under 1.0x. ​

Matador Resources Company (NYSE:MTDR) is an energy firm focused on oil and natural gas exploration, development, and production in the U.S. with an emphasis on oil and natural gas shale and other unconventional plays. ​

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