5 Most Undervalued American Stocks to Invest In

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1. Devon Energy Corporation (NYSE:DVN)

On June 29, 2026, Morgan Stanley lowered its price target on Devon Energy Corporation (NYSE:DVN) to $63 from $66 and kept an Overweight rating. Morgan Stanley noted that oil prices have declined since the U.S. and Iran announced a memorandum of understanding on June 14, with WTI now only slightly above pre-conflict levels. The firm refreshed its estimates for the latest energy prices.

On June 24, Goldman Sachs analyst Neil Mehta reinstated coverage of Devon Energy with a Buy rating and $54 price target. Mehta was positive on the company’s focus on optimizing its Delaware Basin asset, management’s outlook to capture $1.0b in run-rate merger synergies by 2027-end, and its updated return of capital framework to return up to 70% of free cash flow to shareholders. Mehta also cited the stock’s valuation, with shares trading at a 15% free cash flow yield compared with the large-cap peer average of 11%.

On June 15, Raymond James lowered its price target on Devon Energy to $66 from $72 and kept a Strong Buy rating. Raymond James said updated guidance was roughly in line with previous estimates, while the market’s attention is focused on upcoming portfolio rationalization as the next major catalyst to help narrow the valuation gap to peers.

Devon Energy Corporation (NYSE:DVN) explores for, develops, and produces oil, natural gas, and natural gas liquids in the United States.

While we acknowledge the potential of DVN 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 DVN and that has 100x upside potential, check out our report about the cheapest AI stock.

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