12 Best Under-the-Radar Stocks to Buy According to Hedge Funds

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3. SM Energy Company (NYSE:SM)

SM Energy Company (NYSE:SM) is one of the best under-the-radar stocks to buy according to hedge funds. On February 19, Stephens increased its price target on SM Energy Company (NYSE:SM) from $48 to $49 and maintained an Overweight rating on the stock.

According to Stephens, the company’s decision to divest 61,000 net acres and production of 38 MBoepd in the Eagle Ford region for $950 million is a positive step. This deal is expected to close in the second quarter of 2026. SM Energy Company (NYSE:SM) said it plans to use the proceeds mainly to reduce debt. The firm also noted that the company has nearly reached its $1 billion divestiture target in less than half the time it initially expected.

Separately, on February 18, Roth Capital also raised its price target on SM Energy Company (NYSE:SM) from $23 to $24 and kept its Buy rating on the stock. Roth Capital’s analyst told investors in a research note that the firm remains optimistic about SM Energy Company (NYSE:SM), pointing to its discounted valuation compared with peers and potential upside from the Austin Chalk and Uinta plays.

SM Energy Company (NYSE:SM) is an independent American energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids.

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