Is TTE a good stock to buy? We came across a bullish thesis on TotalEnergies SE on Compounding Quality’s Substack. In this article, we will summarize the bulls’ thesis on TTE. TotalEnergies SE’s share was trading at $77.03 as of March 5th. TTE’s trailing and forward P/E were 13.31 and 11.99 respectively according to Yahoo Finance.
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TotalEnergies (TTE) is a French multi-energy company that generates revenue primarily through its traditional oil and gas operations while increasingly expanding into renewable energy. The company produces and sells crude oil, liquefied natural gas (LNG), and refined petroleum products globally, with these legacy businesses continuing to provide the majority of its cash flow.
At the same time, TotalEnergies has been aggressively reinvesting a portion of its hydrocarbon profits into building a large portfolio of renewable assets, including wind and solar projects, as part of a long-term strategy to transform into a diversified energy provider. Management aims to position the company among the world’s top five renewable power producers by 2030, reflecting a faster transition strategy than many of its traditional energy peers.
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A key advantage supporting this transition is the company’s cost structure. TotalEnergies operates several oil projects with among the lowest production costs in the industry, allowing the company to remain profitable even during periods of weak oil prices. This cost efficiency provides stable cash flows that can fund both shareholder returns and investments in lower-carbon energy.
Despite these strengths and its relatively progressive transition plan, the market continues to value TotalEnergies at a notable discount compared with major U.S. peers such as ExxonMobil and Chevron Corporation. The discounted valuation, combined with a dividend yield of approximately 5.9%, creates a compelling investment case for income-focused investors. If the company successfully scales its renewable portfolio while maintaining strong profitability from its legacy assets, the current valuation gap could narrow over time, offering both attractive income and potential upside for shareholders.
Previously, we covered a bullish thesis on Delek US Holdings (DK) by Matt Lindsay in May 2025, which highlighted the company’s Enterprise Optimization Plan and midstream deconsolidation strategy supporting profitability. DK’s stock price has appreciated by approximately 127.82% since our coverage. Compounding Quality shares a similar view but emphasizes TotalEnergies’ diversified energy model, low-cost production, and renewable expansion.
TotalEnergies SE is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held TTE at the end of the fourth quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of TTE 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. If you are looking for an AI stock that is more promising than TTE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
