12 Deep Value Stocks to Invest In

5. Civitas Resources, Inc. (NYSE:CIVI)

Forward P/E: 6.86

Return on Equity: 11.31%           

Dividend Yield: 7.41%

Number of Hedge Fund Holders: 39

Civitas Resources, Inc. (NYSE:CIVI) is one of the 12 deep value stocks to invest in.

On November 4, 2025, Wolfe Research downgraded Civitas Resources, Inc. (NYSE:CIVI) from “Outperform” to “Peer Perform.” The investment firm’s revised rating reflects limited short-term upside, given that the company’s valuation is now tied to its all-stock merger with SM Energy. The firm believes the company’s standalone investment appeal is not much anymore following the merger announcement.

On the previous day, Civitas Resources, Inc. (NYSE:CIVI) announced its $12.8 billion merger with SM Energy, which will result in the creation of one of the top 10 U.S. independent oil producers. SM Energy is an energy company focused on crude oil, natural gas, and NGLs operations.

The deal will see each of the company’s shares converted into 1.45 SM Energy shares, representing roughly 823,000 net acres combined across the top U.S. shale basins. Through the merger, the companies expect up to $300 million in annual synergies, alongside stronger free cash flow generation of over $1.4 billion in 2025 and sustained dividends.

Civitas Resources, Inc. (NYSE:CIVI), an independent oil and gas company, focuses on the acquisition, development, and production of crude oil and liquids-rich natural gas from assets in the Permian and DJ Basins.