5 Best Undervalued Energy Stocks to Buy

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 66

PE Ratio as of December 2: 10.17

At the close of the third quarter of 2022, Chevron Corporation (NYSE:CVX) was a part of 66 investors’ portfolios that disclosed stakes worth $27.13 billion in the company. This is compared to 59 hedge funds in the preceding quarter with stakes worth $26 billion. The hedge fund sentiment for the stock is positive. As of September 30, Berkshire Hathaway is the top investor in the company and has a position worth $23.75 billion.

Chevron Corporation (NYSE:CVX) is cash-rich, profitable, and efficient at generating profits for shareholders. According to the company’s balance sheet, Chevron Corporation (NYSE:CVX) has free cash flows of $36.69 billion, a trailing twelve-month operating margin of 16.27%, and an ROE of 23.16%. The company is currently trading cheaply relative to earnings and is placed among the best undervalued energy stocks to buy right now. As of December 2, the stock has a trailing twelve-month PE ratio of 10.17 and has gained 72.90% year to date.

Wall Street sees material upside to Chevron Corporation (NYSE:CVX). On November 22, Citi analyst Alastair Syme raised his price target on Chevron Corporation (NYSE:CVX) to $180 from $155 and maintained a Neutral rating on the shares.