11 Undervalued Stocks with Biggest Upside Potential

6. California Resources Corporation (NYSE:CRC)

Forward P/E Ratio: 11.33

Number of Hedge Fund Holders: 43

Analyst Upside Potential: 37.62%

​California Resources Corporation (NYSE:CRC) is one of the Undervalued Stocks with Biggest Upside Potential. On December 12, Josh Silverstein from UBS reiterated a Buy rating on the stock but lowered the firm’s price target from $68 to $64. Earlier on December 9, Sam Margolin also lowered the firm’s price target on California Resources Corporation (NYSE:CRC) from $58 to $56, while reiterating a Buy rating.

​Despite a slight price target reduction, Silverstein of UBS remains optimistic on the energy sector. He noted that the sector has seen three years of limited gains; however, 2026 appears to be promising for the sector, driven by improving oil and natural gas outlooks. He added that the sector is also anticipated to benefit from cost and capex efficiencies, emerging OFS opportunities, and improved value creation from M&A.

​On the other hand, Margolin of Wells Fargo noted that the price reduction reflects a slight power adjustment in the firm’s valuation model. The analyst added they expect slight adjustments in California Resources Corporation’s (NYSE:CRC) power segment projections. However, regardless, Margolin views the company’s valuation as being conservative, suggesting room for upside.

Margolin sees potential development in three areas for the company, including resource delineation in exploration and production, a datacenter joint venture in the Power segment, and permits plus contracts for carbon capture, utilization, and storage.

​California Resources Corporation (CRC) is an independent energy company focused on oil and natural gas exploration, development, and production, primarily in California’s San Joaquin, Los Angeles, and Sacramento basins.