5 Most Undervalued Oil Stocks to Buy According to Analysts

In this article, we will list the 5 most undervalued stocks to buy according to analysts. Please visit the 8 Most Undervalued Stocks to Buy According to Analysts if you’d like to see an extended list and how we came up with the list of most undervalued oil stocks.

5. Antero Resources Corporation (NYSE:AR)

On March 13, Goldman Sachs raised the price target on Antero Resources Corporation (NYSE:AR) stock from $39 to $44. Prior to that, on March 5, Benchmark analyst Subash Chandra upgraded Antero Resources Corporation (NYSE:AR) from Hold to Buy and assigned a price target of $44. The analyst noted that the shares have significantly underperformed other oil and gas producers, largely because natural gas prices pulled back from multi-year highs as supply increased. Analyst Subash Chandra said he is not trying to call a bottom in natural gas prices, but his outlook on natural gas exporters is turning more positive. According to the analyst, the conflict involving Iran could increase demand for reliable energy suppliers, which may benefit exporters from the United States. He also pointed out that the United States is the third-largest exporter of propane behind Qatar and the United Arab Emirates, both located in the region affected by conflict.

Subash Chandra further explained that natural gas liquids (NLGs) make up a smaller portion of Antero Resources Corporation’s (NYSE:AR) business following its acquisition of HG Energy II. Even so, the company remains the largest publicly traded NGL exporter. He said that Antero’s dry gas operations could deliver a lower breakeven cost while maintaining favorable pricing dynamics, supported by the company’s access to the LNG export corridor.

Antero Resources Corporation (NYSE:AR) is an independent oil and natural gas company that develops, produces, explores, and acquires natural gas, natural gas liquids (NGLs), and oil properties in the U.S.