Is Chord Energy (CHRD) an Attractively Valued Stock?

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the second quarter, Palm Valley Capital Fund appreciated 0.82% compared to a 4.90% gain for the S&P SmallCap 600 and a 7.28% rise in the Morningstar Small Cap Total Return Index. Cash was 76.7% of Fund assets at the start of the quarter and 73.6% at the conclusion. Year-to-date, the fund gained 1.39% compared to a 4.46% decline for the S&P SmallCap 600 and a 0.75% rise for the Morningstar Small Cap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Chord Energy Corporation (NASDAQ:CHRD). Headquartered in Houston, Texas, Chord Energy Corporation (NASDAQ:CHRD) is an independent production and exploration company. The one-month return of Chord Energy Corporation (NASDAQ:CHRD) was 3.60%, and its shares lost 38.61% of their value over the last 52 weeks. On July 7, 2025, Chord Energy Corporation (NASDAQ:CHRD) stock closed at $103.13 per share, with a market capitalization of $5.956 billion.

Palm Valley Capital Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its second quarter 2025 investor letter:

“The Fund acquired four new names during the second quarter: Healthcare Services Group (ticker: HCSG), Chord Energy Corporation (NASDAQ:CHRD), RPC (ticker: RES), and Papa John’s International (ticker: PZZA).

Chord Energy is an exploration and production (E&P) company in the Williston Basin. As oil prices fell sharply in April, Chord’s stock fell below our valuation of the firm’s proven reserves. We’re fond of Chord’s strong balance sheet, free cash flow, and low-cost oil reserves. In 2024, the company generated $2.35 billion of EBITDA and $1 billion of free cash flow. Since the majority of Chord’s $800 million in debt doesn’t mature until 2033, we believe free cash flow will continue to be used to pay dividends and repurchase stock. Since 2021, Chord has paid $56 per share in dividends (over half the current share price!). With a market cap near $5 billion, we believe Chord is attractively priced relative to cash flow and our net asset valuation.”

We recently published a list of Top 10 Oil & Gas E&P Stocks Outperforming Despite Sinking Oil Prices. In this article, we are going to take a look at where Chord Energy Corporation (CHRD) stands against other top oil & gas E&P stocks outperforming despite sinking oil prices. Oil prices have crashed by as much as 8.5% since the start of this month as Donald Trump reignites the tariff war. At one point, it was down as much as 18%! The broader market, as well as investors, have come to terms with a harsh reality: the tariffs are here to stay! Inflation resulting from these tariffs threatens to send the country’s economy into recession, and global oil demand is reacting accordingly. The oil prices continue to tumble, threatening the future of some of the major oil producers of the world. Amid this uncertain environment, some oil and gas stocks are outperforming the market. We decided to take a look at these stocks to find gems that can help retail investors outperform the market in these tough times. To come up with our list of the top 10 oil & gas stocks outperforming despite sinking oil prices, we looked at the oil & gas exploration and production industry, considering only the stocks with a market cap between $2 billion and $10 billion. Chord Energy Corporation (NASDAQ:CHRD) Chord Energy Corporation is an independent production and exploration company. It engages in the exploration, development, production, and acquisition of natural gas, natural gas liquids, and crude oil. The company supplies its products to marketers, refiners, and other purchasers. The company’s stock is up 6.52% in the last one week of trading. The firm is expected to generate revenues worth $3.763 billion in 2025. CHRD is projected to produce approximately 271,500 Barrels of Oil Equivalent Per Day (boepd) in 2025. It also actively repurchases shares to show its commitment to shareholders’ returns. In Q1 2025, the company bought back 2 million shares for $216.5 million. According to 20 different analyst ratings, the company has a highest target price of $186, which means the price could potentially more than double from the current levels if the bull thesis proves accurate. The stock is currently trading at $94.29, which is still below the lowest Wall Street price target of $106. Despite gaining upward momentum, the current share price presents an attractive buying opportunity to benefit from the potential upside in the future. Overall, CHRD ranks 3rd on our list of top oil & gas E&P stocks outperforming despite sinking oil prices. While we acknowledge the potential of CHRD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than CHRD  but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.

A technician in a lab coat examining a sample of crude oil.

Chord Energy Corporation (NASDAQ:CHRD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Chord Energy Corporation (NASDAQ:CHRD) at the end of the first quarter, compared to 56 in the previous quarter. While we acknowledge the potential of Chord Energy Corporation (NASDAQ:CHRD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Chord Energy Corporation (NASDAQ:CHRD) and shared the list of best natural gas stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of CHRD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.