15 Stocks Set to Explode in 2026

10. SM Energy Company (NYSE:SM)

Number of Hedge Fund Holders: 36

Upside Potential: 98.88%

SM Energy Company (NYSE:SM) is one of the 15 stocks set to explode in 2026.

SM Energy Company (NYSE:SM) reported its third-quarter results on November 3, 2025. The quarter featured record production and resilient cash production margins amid softer commodity prices.

During the quarter, SM Energy Company (NYSE:SM) reported $155.1 million, or $1.35 per share in net income, compared with $240.5 million, or $2.09 per share, in the same period a year earlier. On an adjusted basis, the net income came in at $153.7 million ($1.33 per share) and adjusted EBITDAX stood at $588.2 million, reflecting a 22% YoY increase.

Meanwhile, SM Energy Company (NYSE:SM) reported a 26% YoY growth in production, taking it to 19.7 MMBoe (213.8 MBoe/d). The increased production was driven by a 47% growth in oil volumes from the Uinta Basin. SM Energy Company (NYSE:SM) maintained its company-wide cash margins despite a $10/Bbl drop in benchmark oil prices, thanks to operational efficiencies it achieved during the quarter. Accordingly, a 33% growth was noted in operating cash flow, bringing it to $557.5 million, which generated $234.3 million in free cash flow, an 80% increase from 2024.

In the third quarter, SM Energy Company’s (NYSE:SM) capital activity included drilling 24 net wells, 12 of which were in the Uinta Basin and eight were in South Texas. The company also added 27 net flowing completions, 15 of which were in the Midland Basin and 12 were in South Texas.

Ending the quarter with $162.3 million in cash and reduced leverage of 1.1x net debt-to-EBITDAX, SM Energy Company (NYSE:SM) returned $35.1 million to shareholders through dividends and buybacks. Its capital expenditures for the quarter totaled $397.7 million.

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