5 Undervalued and Cheap Energy Stocks to Buy Now

In this article, we discuss 5 undervalued and cheap energy stocks to buy now. If you want to see more stocks in this list, check out 10 Undervalued and Cheap Energy Stocks to Buy Now. 

5. Magnolia Oil & Gas Corporation (NYSE:MGY)

Number of Hedge Fund Holders: 22

P/E Ratio as of September 13: 6.32

Share Price as of September 13: $23.58

Magnolia Oil & Gas Corporation (NYSE:MGY) is a Texas-based company specializing in the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the United States. On August 2, the company reported a Q2 GAAP EPS of $1.32, exceeding consensus estimates by $0.15. The revenue climbed 93.3% year over year to $484.65 million, topping market forecasts by $25.05 million. Magnolia Oil & Gas Corporation (NYSE:MGY) also declared a $0.10 per share dividend, which was paid on September 1.

MKM Partners analyst Leo Mariani on July 20 assumed coverage of Magnolia Oil & Gas Corporation (NYSE:MGY) with a Buy rating and a $26 price target as part of a broader research note on Exploration & Production names. The analyst remained positive on the company’s “high per share production growth, upside potential in the Austin Chalk play, best in class balance sheet, and strong, consistent returns of capital to shareholders”.

According to Insider Monkey’s Q2 data, 22 hedge funds were long Magnolia Oil & Gas Corporation (NYSE:MGY), with combined stakes worth $177.2 million. Amy Minella’s Cardinal Capital is the leading position holder in the company, with 3.85 million shares worth about $81 million. 

Here is what Wasatch Ultra Growth Fund has to say about Magnolia Oil & Gas Corporation (NASDAQ:MGY) in its Q1 2022 investor letter:

“Another strong stock in the Fund was Magnolia Oil & Gas Corp. (NASDAQ:MGY). Operating primarily in oil-rich South Texas, the company engages in the development, exploration and production of oil and natural gas. Sharply higher prices for oil and gas boosted Magnolia’s share price during the first quarter. We’re impressed by the company’s disciplined management team and consistent record of returning cash to shareholders regardless of the price of oil.”