In this article, we will explore the 8 Most Undervalued Oil Stocks to Buy According to Analysts.
The US-Iran war has propelled oil prices higher, and if political commentary is anything to go by, the prices could stay higher for longer than previously anticipated. On March 10, HSBC analysts raised their average 2026 oil price forecasts. Brent forecast was raised from $65 to $80 while the WTI Crude Oil price forecast was raised from $61 to $76.
Even the US Energy Information Administration increased its average Brent price forecast for 2026 from $58 to $79. This is a 36% increase, but one that is fully justified in times of regional conflict. Currently, oil prices are hovering around $95, and it is anybody’s guess how the conflict will play out from here.
Analysts at Goldman Sachs pointed out the impact of higher oil prices on S&P 500 earnings. If real US GDP growth were to decline by 1%, S&P 500 EPS would fall by 3% to 4%, according to analysts. Joe Brusuelas, chief economist at RSM US LLP, also echoed a similar sentiment:
As prices rise, consumption is affected, and, ultimately, corporate earnings erode.
But, on the other side, there’s a positive element here. Energy stocks could register double-digit earnings growth on the back of higher oil prices. This may not offset the S&P 500’s losses, as energy accounts for less than 5% of the index’s earnings, but there is nonetheless growth in the energy sector.
To benefit from this growth, we decided to look at oil and gas stocks trading at favorable valuations, providing investors with a reasonable margin of safety to counter negative sentiment in the broader market.
Our Methodology
To come up with our list of the 10 most undervalued oil stocks to buy according to analysts, we looked at oil and gas companies with a minimum market cap of $2 billion. We then filtered out companies trading at a forward P/E below 15 and limited our final selection to companies that had recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds, and are listed in ascending order of their potential upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on March 13.
8. Crescent Energy Company (NYSE:CRGY)
Mark Lear from Piper Sandler increased the firm’s price target on Crescent Energy Company (NYSE:CRGY) from $14 to $16 while keeping an Overweight rating on March 12. The firm’s upwardly adjusted price target implies an additional 33% upside from current levels. The firm has revised its price target on the stock upward twice so far in March, first on March 5 and again on March 12. Both upward revisions were based on the same geopolitical backdrop. The conflict involving Iran has increased risks to the global energy supply and strengthened the investment case for energy equities.
The price target revision reflects the firm’s higher commodity price assumptions. Piper Sandler said it has increased its mid-cycle crude oil forecast to $75 per barrel from $70 per barrel. The change came as the conflict involving Iran raised concerns about global oil supply. The analyst expects the situation to have longer-lasting disruptions to global oil supply. According to the firm, higher oil prices may be needed to encourage continued investment in production, especially as supply risks remain elevated.
According to a report released on March 6, Siebert Williams Shank & Co analyst Gabriele Sorbara also reaffirmed a Buy rating on Crescent Energy Company (NYSE:CRGY), along with the price target of $18.
Crescent Energy Company (NYSE:CRGY) is an energy company with a portfolio of oil and gas assets in Texas and the Rocky Mountain region. The company is based in Houston, Texas.
7. YPF Sociedad Anónima (NYSE:YPF)
Lilyanna Yang from HSBC increased the firm’s price target on YPF Sociedad Anónima (NYSE:YPF) from $36 to $40 while reiterating a Hold rating on March 12. According to the firm, the price target revision reflects its updated outlook for oil prices, as it now sees greater upside risks in the crude market. Based on this view, HSBC raised its estimates for several Latin American oil companies under its coverage, including YPF.
Earlier, on March 5, Jefferies analyst Alejandro Demichelis also reaffirmed a Buy rating on YPF Sociedad Anónima (NYSE:YPF), along with the price target of $47. The firm’s price target suggests a further 25.4% upside from the current levels.
YPF Sociedad Anónima (NYSE:YPF) repurchased Class XXX notes worth 49.8 billion Argentine pesos between March 3 and March 9. The amount is equal to a par value of $35.5 million. The company said peso‑denominated notes were repurchased at an average price of 98.83% of their nominal value. These notes mature in July 2026, and the company will keep the repurchased securities in its portfolio.
YPF Sociedad Anónima (NYSE:YPF) is an energy company operating in Argentina. The company is involved in upstream and downstream gas and oil activities. It was founded in 1977 and is headquartered in Buenos Aires, Argentina.
6. Energy Transfer LP (NYSE:ET)
Robert Kad from Morgan Stanley increased the firm’s price target on Energy Transfer LP (NYSE:ET) from $19 to $21 while maintaining an Equal Weight rating on March 10. The update was issued as part of the firm’s weekly review of North American midstream and renewable energy infrastructure companies.
Analyst sentiment has been largely positive after Energy Transfer LP (NYSE:ET) reported its fourth-quarter results on February 17. Adjusted EBITDA for the quarter reached $4.2 billion, compared with $3.9 billion in the same period last year. Distributable cash flow (DCF) attributable to partners came in at around $2 billion, which was in line with the prior-year quarter. The NGL and refined products segment generated adjusted EBITDA of $1.1 billion. This figure included a one-time $56 million increase linked to a regulatory order. However, the gain was largely offset by a $58 million timing-related decline and a $14 million impact from loading delays at Nederland terminals.
Among the other business segments, midstream operations reported adjusted EBITDA of $720 million, while the crude oil segment recorded $722 million. The interstate natural gas segment delivered $523 million, and the intrastate natural gas segment contributed $355 million.
Energy Transfer LP (NYSE:ET) is a midstream energy company that delivers energy services across 44 states. It specializes in transportation and storage of natural gas, crude oil, natural gas liquids (NGLs), and refined products. The company operates storage facilities and an extensive network of intrastate natural gas transportation pipelines.
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