5 Best Undervalued Energy Stocks to Buy

In this article, we will discuss the 5 best undervalued energy stocks to buy. If you want to explore similar stocks, you can also read 12 Best Undervalued Energy Stocks to Buy.

5. Diamondback Energy, Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 55

PE Ratio as of December 2: 5.91

Diamondback Energy, Inc. (NASDAQ:FANG) is involved in the hydrocarbon exploration business and is headquartered in Midland, Texas. The company has a market-leading position and abundant cash flows. According to the company’s balance sheet, Diamondback Energy, Inc. (NASDAQ:FANG) has free cash flows of $3.23 billion. As of December 2, the company is trading at a PE multiple of 5x and has gained 30.06% year to date. Diamondback Energy, Inc. (NASDAQ:FANG) is one of the best undervalued energy stocks to buy now.

On November 22, Citi analyst Scott Gruber raised his price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $170 from $155 and maintained a Buy rating on the shares. This November, Credit Suisse analyst William Janela raised his price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $195 from $190 and reiterated an Outperform rating on the shares.

At the close of Q3 2022, Diamondback Energy, Inc. (NASDAQ:FANG)  was a part of 55 investors’ portfolios that disclosed positions worth $910.9 million in the company. This is compared to 54 positions in the previous quarter with stakes worth $811.3 million. As of September 30, Yacktman Asset Management is the top investor in the company and has a position worth $152.02 million.