In this article, we will list the 5 Most Undervalued Energy Stocks to Buy Now. Please visit 11 Most Undervalued Energy Stocks to Buy Now if you’d like to see an extended list and how we came up with the list of energy stocks.

5. Devon Energy Corporation (NYSE:DVN)

Devon Energy Corporation (NYSE:DVN) is one of the most undervalued energy stocks to buy now. On March 13, Barclays lifted the price target on Devon Energy Corporation (NYSE:DVN) to $54 from $52 while reiterating an Overweight rating on the shares. The firm told investors in a research note that it raised its 2026 oil price estimates on the Iran war, and believes that the cash flow tailwinds are still underappreciated for the exploration and production group. Barclays further stated that although the oil spike is not likely to last for long, the market is underappreciating the cash flow benefit and the “durable benefit” it will have on the group’s capacity to lift cash returns beyond the conflict.

In another development, Piper Sandler lifted the price target on Devon Energy Corporation (NYSE:DVN) to $67 from $59 on March 12, keeping an Overweight rating on the shares and citing its increased price deck for the target bump. The firm told investors that amid the Iran war, it increased its mid-cycle crude price forecast to $75 per barrel from $70, and anticipates lasting supply impacts. It also stated that higher prices are required to incentivize investment in production.

Devon Energy Corporation (NYSE:DVN) is involved in the exploration, development, and production of oil and natural gas properties. The company operates and develops the Delaware Basin, Eagle Ford, Heavy Oil, Barnett Shale, STACK, and Rockies Oil.

4. BP p.l.c. (NYSE:BP)

BP p.l.c. (NYSE:BP) is one of the most undervalued energy stocks to buy now. On March 13, BofA adjusted the price target on BP p.l.c. (NYSE:BP) to 400 GBp from 370 GBp and maintained an Outperform rating on the shares. Its commodities research team increased oil and gas price forecasts across 2026-27 to take into account the risks of a prolonged shutdown of the Strait of Hormuz, driving higher price targets across the firm’s European oil and gas coverage.

BP p.l.c. (NYSE:BP) also received a rating update from Piper Sandler on March 12. The firm adjusted the price target on the stock to $47 from $44 and maintained a Neutral rating on the shares, telling investors that, driven by the lasting effects of the war in Iran, the firm is revising forward estimates and price targets on the back of a $5.00/bbl rise in its mid-cycle WTI price forecast. Piper further stated that although the duration of outages in the Middle East remains highly uncertain, Piper’s commodity macro team, led by Global Energy Strategist Jan Stuart, anticipates that 2026 crude balances will tighten by about 2.0 Mb/d vs. prior expectations. In addition, lingering impacts/risk premiums and global resource tightening will raise the bar on future investment.

Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.

3. EOG Resources, Inc. (NYSE:EOG)

EOG Resources, Inc. (NYSE:EOG) is one of the most undervalued energy stocks to buy now. EOG Resources, Inc. (NYSE:EOG) received a rating update from Barclays on March 13. The firm lifted the price target on the stock to $140 from $133 and reaffirmed an Equal Weight rating on the shares, telling investors that it raised 2026 oil price estimates on the Iran war. The firm believes that the cash flow tailwinds are still underappreciated for the exploration and production group. Barclays further told investors in a research note that although the oil spike is not likely to last for long, the market is underappreciating the cash flow benefit and the “durable benefit” it will have on the group’s capacity to lift cash returns beyond the conflict.

Piper Sandler also raised the price target on EOG Resources, Inc. (NYSE:EOG) to $144 from $127 on March 12, keeping a Neutral rating on the shares and citing its increased price deck for the target bump. The firm told investors that amid the Iran war, it increased its mid-cycle crude price forecast to $75 per barrel from $70 and anticipates lasting supply impacts. It also stated that higher prices are required to incentivize investment in production.

EOG Resources, Inc. (NYSE:EOG) explores, develops, produces, and markets natural gas and crude oil. Its operations are divided into the following geographical segments: United States, Trinidad, and Other International.

2. Phillips 66 (NYSE:PSX)

Phillips 66 (NYSE:PSX) is one of the most undervalued energy stocks to buy now. On March 12, Goldman Sachs lifted the price target on Phillips 66 (NYSE:PSX) to $186 from $168 and maintained a Neutral rating on the shares. The firm told investors in a research note that estimates across the U.S. Majors and Canadian Oils have been updated to reflect recent Middle East disruptions, with price targets lifted despite strong year-to-date equity performance.

Phillips 66 (NYSE:PSX) also received a rating update from Barclays on February 20. The firm lifted the price target on the stock to $158 from $142, maintaining an Equal Weight rating on the shares and telling investors that it updated the company’s model to reflect the fiscal Q4 report.

In its fiscal Q4 and full year 2025 results, the company reported fiscal Q4 earnings of $2.9 billion or $7.17 per share and adjusted earnings of $1.0 billion or $2.47 per share, including $239 million of pre-tax accelerated depreciation on the Los Angeles Refinery. Phillips 66 (NYSE:PSX) also reported full-year 2025 earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share, including $964 million of pre-tax accelerated depreciation on the Los Angeles Refinery.

Phillips 66 (NYSE:PSX) is involved in the processing, storage, transportation, and marketing of fuels and other related products. The company’s operations are divided into the following segments: Midstream, Chemicals, Refining, Renewable Fuels, Marketing and Specialties, and Corporate and Other.

1. EQT Corporation (NYSE:EQT)

EQT Corporation (NYSE:EQT) is one of the most undervalued energy stocks to buy now. EQT Corporation (NYSE:EQT) received a rating update from Barclays on March 13, with the firm lifting the price target on the stock to $69 from $67 and reiterating an Overweight rating on the shares. The firm believes cash flow tailwinds are underappreciated for the exploration and production group, and raised 2026 oil price estimates on the conflict in Iran.

In another development, UBS cut the price target on EQT Corporation (NYSE:EQT) to $75 from $76 on March 5, maintaining a Buy rating on the shares. The firm told investors in a research note that energy is viewed as offering attractive risk/reward, with the higher price target showing a $10/bbl rise in 2026 oil price assumptions to $68 WTI and $72 Brent and a modest valuation multiple expansion due to geopolitical risk. It further stated that markets seem to be underpricing prolonged Middle East conflict and potential Qatar gas supply disruptions, which may result in a lift in oil and natural gas prices and drive the strongest free cash flow upside for companies producing both oil and gas.

EQT Corporation (NYSE:EQT) is a natural gas production company involved in the provision of supply, transmission, and distribution of natural gas.

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

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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.