In this article, we will take a look at the 5 Cash-Rich Stocks to Buy Right Now. For a deeper discussion and analysis, please refer to the 10 Most Profitable Energy Stocks to Buy Now.
5. Magnolia Oil & Gas Corporation (NYSE:MGY)
Net Profit Margin: 25.11%
Magnolia Oil & Gas Corporation (NYSE:MGY) is an independent oil producer with assets in the Eagle Ford Shale and Austin Chalk formations in South Texas.
On May 27, Mizuho raised its price target on Magnolia Oil & Gas Corporation (NYSE:MGY) from $33 to $35, while maintaining an ‘Outperform’ rating on the shares. The revised price objective reflects an upside of over 28% from the current levels.
Mizuho expects the ongoing Middle East conflict to have a lasting impact on the global oil prices and refining margins. As a result, the firm boosted its oil price forecast for this year and the next by 25% and 6%, respectively. Similarly, it also significantly raised its outlook for US refining cracks by 61% and 51%.
Mizuho believes that a fall in energy stock valuations, despite the high commodity prices, would give investors a chance to seek “alpha” within the American oil and gas sector. The analyst firm adjusted its ratings and price targets across the group.
American Century Investments, an investment management company, stated the following regarding Magnolia Oil & Gas Corporation (NYSE:MGY) in its Q1 2026 investor letter:
“Magnolia Oil & Gas Corporation (NYSE:MGY). The Houston-based oil and gas company benefited as the energy sector rallied during the quarter. The stock jumped higher in March as oil prices spiked and investors weighed the implications of continued supply disruptions caused by the war in Iran.”
4. Range Resources Corporation (NYSE:RRC)
Net Profit Margin: 28.12%
Range Resources Corporation (NYSE:RRC) is a leading US independent natural gas and NGL producer with operations focused in the Appalachian Basin.
On May 26, Barclays lifted its price target on Range Resources Corporation (NYSE:RRC) from $41 to $43 and maintained its Equal Weight rating on the shares. The revised target represents an upside of almost 12% from the current price level.
The analyst firm noted that the depleting inventories, reduced spare capacity within OPEC, and a “muted” US supply response to the Middle East disruptions are contributing to a tighter oil macro backdrop that is not yet fully reflected in energy stocks’ valuations. According to Barclays, this could lead to a re-rating of the “oily” exploration and production operators once the war has reached its conclusion.
Barclays also lowered its gas price outlook due to oversupply issues in the near-term and revised its ratings and price targets in the integrated oil and exploration and production group.
3. Western Midstream Partners, LP (NYSE:WES)
Net Profit Margin: 30.99%
Western Midstream Partners, LP (NYSE:WES) operates as a midstream energy company primarily in the United States.
On May 27, Morgan Stanley raised its price target on Western Midstream Partners, LP (NYSE:WES) from $41 to $51, but kept its ‘Underweight’ rating on the shares. The target adjustment indicates an upside of over 17% from the current levels.
Western Midstream Partners, LP (NYSE:WES) exceeded expectations in its Q1 report last month, supported by the contribution from its Aris acquisition, per-day throughput growth across all 3 product lines, and the continued success of its cost-cutting efforts. Moreover, the company’s adjusted gross margin also received a boost from the significant rise in crude oil prices in March.
Western Midstream Partners, LP (NYSE:WES) also announced the acquisition of the privately held Brazos Delaware II in a $1.6 billion deal last month, further reinforcing its gathering and processing footprint in the core of the Permian Basin. The company will provide updated guidance for FY 2026 together with its Q2 results after the Brazos close.
2. LandBridge Company LLC (NYSE:LB)
Net Profit Margin: 36.29%
LandBridge Company LLC (NYSE:LB) actively manages its land and resources to support and encourage oil and natural gas development and other critical land uses.
On May 29, Goldman Sachs slightly trimmed its price objective on LandBridge Company LLC (NYSE:LB) from $85 to $84, but maintained a ‘Buy’ rating on the shares. The lowered target still reflects an upside of over 23% from the current price level.
The revision comes as Goldman Sachs refreshed its valuation of the stock, supported by the continued expectations of per-acre revenue growth and significant capacity for capital deployment.
LandBridge Company LLC (NYSE:LB) fell behind Wall Street estimates in its Q1 report last month, but the analyst firm attributed the weak performance to timing factors rather than a deterioration of fundamentals. Goldman also highlighted how the company raised its full-year 2026 adjusted EBITDA guidance to $210 million to $230 million, up $5 million at both the low and high ends of the range, driven by a more favorable macro environment.
1. Frontline plc (NYSE:FRO)
Net Profit Margin: 40.19%
Frontline plc (NYSE:FRO) is a world leader in international seaborne transportation of crude oil. The company has one of the world’s largest fleets of VLCC and Suezmax tankers, and LR2/Aframax tankers.
On May 26, Danske Bank downgraded Frontline plc (NYSE:FRO) from ‘Buy’ to ‘Hold’ and assigned the stock a price target of $39.46, indicating an upside of almost 9% from the current levels.
Similarly, on the same day, Frontline plc (NYSE:FRO) was also downgraded at Pareto from ‘Buy’ to ‘Hold’, with a price target of $40.
The downgrades come after Frontline plc (NYSE:FRO) reported mixed results for its Q1 2026 on May 22, with its adjusted profit of $1.55 falling behind estimates by $0.03. However, its revenue grew by 67% YoY to over $714 million and exceeded Wall Street expectations. Moreover, the company’s net income of $559 million was up significantly from the $33 million it delivered in the same period last year, primarily due to its time charter earnings rising to $536.5 million.
While we acknowledge the potential of FRO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FRO and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Renewable Energy Stocks to Buy According to Billionaires and 10 Most Volatile Stocks to Buy in S&P 500
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
