In this article, we will discuss: Top 15 Commodity Producers With the Highest Upside Potential.
Commodity producer stocks are shares of publicly listed firms that produce, explore, or distribute commodities. These businesses are frequently interested in metals, mining, agriculture, and energy. Commodity producer stocks are chosen by investors to obtain exposure to both the equity and commodities markets, potentially profiting from heightened interest in either.
The commodity market is booming. According to a research report, the size of the global commodity services market was projected at $3.56 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.65% from 2025 to 2034, from $3.87 billion in 2025 to roughly $8.16 billion by 2034. Regionally, the commodity services industry is dominated by North America, while Asia Pacific is projected to grow at a quick pace.
However, the World Bank’s April 2025 Commodity Markets Outlook projects that global commodity prices will plummet, falling 12% in 2025 and further 5% in 2026 to their lowest level since 2020. The anticipated drop is being driven by slowing global economic growth and persistently high oil supply. This decline carries risks to economic growth in developing countries, with two-thirds likely to see setbacks, even though it may reduce short-term price pressures associated with rising trade barriers. Notwithstanding the drop, nominal prices will still be higher than they were before the pandemic.
Ayhan Kose, the World Bank Group’s Deputy Chief Economist and Director of the Prospects Group, stated:
“Commodity prices have whipsawed throughout the 2020s—plummeting with arrival of the COVID-19 pandemic, then surging to record highs after Russia’s invasion of Ukraine, and then sinking again,” said Ayhan Kose, the World Bank Group’s Deputy Chief Economist and Director of the Prospects Group. “In an era of geopolitical tensions, surging demand for critical minerals, and more frequent natural disasters, that could become the new normal. Successfully navigating through repeated commodity prices swings will require developing economies to build fiscal space, strengthen their institutions, and improve investment climates to facilitate job creation.”
On the other hand, Morgan Stanley, on February 21, highlighted that 2025 is anticipated to be a crucial year for commodity markets, influenced by supply fundamentals, inflation patterns, and dollar fluctuations. Inflation in the United States is still high, falling short of the Federal Reserve’s 2% target in December with headline CPI readings of 2.9% and core CPI readings of 3.2%. After the U.S. presidential election, policy changes—particularly related to immigration, deficits, and tariffs—have raised inflation expectations. According to data from the University of Michigan, they rose from 2.8% to 3.3% in just one month. Commodity prices have generally been supported by these conditions.
Since late September, the U.S. dollar has risen by almost 8%, in part because of growing interest rates and policy expectations. Global demand for commodities is usually pressured by a strong dollar, but if the currency stabilizes or depreciates, it may eliminate a significant obstacle. Although recent contango suggests sufficient short-term supply, a yield-adjusted perspective reveals markets in backwardation at about 4%, showing ongoing physical tightness. This suggests that inventories for essential commodities remain low, making the market more susceptible to demand shocks. Commodity performance in 2025 is supported by tight supply, high inflation, as well as potential dollar weakness.
With that said, here are the Top 15 Commodity Producers With the Highest Upside Potential.
Our Methodology
To collect data for this article, we examined companies operating in the commodity sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of May 1, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Commodity Producers with the Highest Upside Potential.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. BP p.l.c. (NYSE:BP)
Analysts’ Upside Potential as of May 01: 21.84%
BP p.l.c. (NYSE:BP) is an oil and gas conglomerate that conducts global oil exploration, production, and refining. It generated 6.9 billion cubic feet of natural gas per day and 1.2 million barrels of liquids in 2024. At the end of 2023, reserves totaled 6.8 billion barrels of oil equivalent, with liquids accounting for 55%. The business runs refineries that can process 1.6 million barrels of oil every day. It is ranked fifteenth on our list of the Best Commodity Stocks.
Although BP p.l.c. (NYSE:BP) continues to use the term “integrated energy company,” its original meaning has changed. They are no longer heavily investing in low-carbon initiatives and leaning into the energy transition as a result of their recent change of strategy. Rather, management is increasing investment in oil and gas and decreasing low-carbon investment after years of inadequate results after the implementation of the transition strategy. This is good news for investors.
Earnings for the first quarter of 2025 were below market estimates, while debt levels rose from the end of 2024. The quarter’s reported repurchase rate of $750 million fell short of the prior target range. Management expressed confidence in the strategy reset announced in February. Moreover, the firm expanded its resource base by making six exploratory discoveries, including noteworthy ones in the Gulf of Mexico, Trinidad, Egypt, and Namibia. BP p.l.c. (NYSE:BP) also lowered its core operational expenditure by $500 million quarter over quarter, showing its sustained commitment to cost control.
14. Chevron Corporation (NYSE:CVX)
Analysts’ Upside Potential as of May 01: 22.45%
Chevron Corporation (NYSE:CVX) is a global energy business that engages in exploration, production, and refining. It produces 3.0 million barrels of oil equivalent per day, which includes 7.7 million cubic feet of natural gas per day and 1.7 million barrels of liquids per day, making it the second-largest oil business in the United States. Production occurs throughout North America, South America, Europe, Africa, Asia, and Australia. It can refine 1.8 million barrels of oil per day at its refineries in the US and Asia. At the end of 2024, proven reserves were 9.8 billion barrels of oil equivalent, which included 28.4 trillion cubic feet of natural gas and 5.1 billion barrels of liquids. As per Morningstar analysts, its oil-leveraged portfolio’s volume growth and margin expansion, cost savings, and improved operations are anticipated to generate higher returns and more free cash flow. It is among the Best Commodity Stocks.
Chevron Corporation (NYSE:CVX) reported strong fourth-quarter results for 2024, exceeding analyst projections by more than $3.8 billion and reporting sales of $52.23 billion, a 10.7% rise over the same quarter the year before. A 19% increase in US production and a 7% increase in global output, both of which established new records for the year, were major contributors to this expansion.
The firm maintained a strong financial position with a year-end net debt ratio of only 10%, and it also generated close to $8 billion from asset sales. Over time, Chevron Corporation (NYSE:CVX)’s dividend strategy has been strengthened by its consistent cash reserves. The business recorded operating cash flow of $31.5 billion and free cash flow of $15 billion for the fiscal year 2024. Its sustained dedication to shareholder returns is shown by the $12 billion in dividends it paid to shareholders and the $15 billion it repurchased in stock as a result of this strong cash flow.
13. Rio Tinto Group (NYSE:RIO)
Analysts’ Upside Potential as of May 01: 24.68%
Rio Tinto Group (NYSE:RIO) is a major global mining company that operates in iron ore, copper, aluminum (including bauxite and alumina), and minerals (diamonds, borates, salt, and mineral sands). Commodity demand is strongly linked to global economic growth, particularly in China. Over the past 20 years, the firm has profited enormously from the China boom. China is by far the company’s biggest client, accounting for over 60% of sales in 2024. It is one of the Best Commodity Stocks.
On April 4, 2025, Rio Tinto Group (NYSE:RIO) stated that it had invested $10.3 billion in Western Australia in 2024 to promote local businesses and build its pipeline for upcoming Pilbara mining projects. The company’s investments were mostly used for earthworks and the purchase of heavy mining equipment.
For the ninth year in a row, Rio Tinto Group (NYSE:RIO) has paid out ordinary dividends at the top end of the range, reaching $6.5 billion, while maintaining a 60% payout ratio, showing steady returns to shareholders. The firm had strong financial success with a 67% EBITDA cash conversion rate and a 3% rise in operating cash flow, despite an 11% decline in iron ore prices. The ramp-up of Oyu Tolgoi, excluding the Arcadium Lithium acquisition, was the main driver of the 1% rise in copper equivalent production in 2024, with forecasts pointing to a further 4% increase. The copper and aluminum divisions both kept getting stronger, with aluminum specifically helping to boost product group EBITDA by 61%.
12. International Paper Company (NYSE:IP)
Analysts’ Upside Potential as of May 01: 25.75%
International Paper Company (NYSE:IP) produces cellulose fibers and packaging products. It accounts for approximately one-third of the North American corrugated packaging market. Although it operates in China, India, and Brazil, North America accounts for over three-quarters of its sales. The firm caters to various end markets, such as manufacturing, consumer goods, and industrial. The stock surged by more than 26% in the past year, making it one of the Best Commodity Stocks.
International Paper Company (NYSE:IP) produces cellulose fibers and packaging items. It accounts for approximately one-third of the North American corrugated packaging market. Despite having businesses throughout Europe, North America accounts for more than three-quarters of its sales. Although the business has been able to boost pricing and margins due to ten years of consolidation in the corrugated packaging market, recent years have seen a decline in profitability due to growing costs and more intense competition.
International Paper Company (NYSE:IP) announced first-quarter revenue growth of 28% YoY. Nonetheless, the quarter’s packaging demand was hindered by the potential impact of tariffs and economic uncertainties. Softer demand is still a challenge, although higher selling prices, mostly in North America, were able to offset this. Since practically all of its packaging is made and marketed in the same region, and because its inputs are all obtained locally, the company has no direct exposure to tariffs. However, a slowdown in consumer spending or the growth of the global gross domestic product could have a huge impact on volumes; thus, the company is exposed to indirect effects.
Nevertheless, International Paper Company (NYSE:IP) is still following its 80/20 approach, which involves cutting expenses in its legacy network and has now started to do the same with DS Smith. This should help margins in the face of a downturn in volume.
ClearBridge Mid Cap Strategy stated the following regarding International Paper Company (NYSE:IP) in its Q1 2025 investor letter:
“We exited our position in chemical manufacturer Ashland. We redeployed the proceeds to relatively new holding International Paper Company (NYSE:IP), which we believe represents a strong turnaround story under the leadership of a new CEO and his plan to optimize its footprint, adjust pricing dynamics and improve margins over the next few years.”
11. EOG Resources, Inc. (NYSE:EOG)
Analysts’ Upside Potential as of May 01: 27.15%
EOG Resources, Inc. (NYSE:EOG) is an oil and gas company that owns land in several US shale plays, mostly in the Eagle Ford and Permian Basin. The firm stated that it had 4.7 billion barrels of oil equivalent in net proven reserves by the end of 2024. At a ratio of 69% oil and natural gas liquids to 31% natural gas, net production averaged about 1,062 thousand barrels of oil equivalent per day in 2024. It is ranked eleventh on our list of the Best Commodity Stocks.
EOG Resources, Inc. (NYSE:EOG)’s approach to capital allocation is a little different from that of other US exploration and production companies. Although the integrated majors and their peers have been bitten by the consolidation bug, the firm mostly concentrates on organic exploration activities. It has adopted a capital allocation strategy that prioritizes paying shareholders back while still being open to investing in modest production expansion. Ultimately, it changed course earlier than most to become a low-cost provider in a market that overextended itself during the shale revolution. It is positioned as an outstanding shale company with industry-leading returns on capital due to its impressive asset mix, which includes its dominant position in the Delaware Basin.
EOG Resources, Inc. (NYSE:EOG) reported cash operating expenses of $10.31 boe/d and total production of 1,090 mboe/d. Furthermore, the company utilized about $800 million to repurchase shares in the first quarter of 2025, returning 98% of its available free cash flow. In 2025, management reduced capital spending by $200 million to $6 billion.
10. Occidental Petroleum Corporation (NYSE:OXY)
Analysts’ Upside Potential as of May 01: 29.28%
Occidental Petroleum Corporation (NYSE:OXY) is one of the world’s leading independent oil and gas producers. Its upstream operations are dispersed throughout North Africa, the Middle East, and the US. The firm owns a majority equity stake in Western Midstream and operates a consolidated midstream business that supplies the upstream segment with gathering, processing, and transportation services. The portfolio also consists of a chemicals company that makes PVC and caustic soda. The latter segment benefits from low energy and ethylene prices, but its profitability is governed by the strength of the overall economy.
Despite having dropped over 40% from its peak, Occidental Petroleum Corporation (NYSE:OXY) is still a strong investment opportunity due to its affordable price and advantageous supply dynamics. The lower-than-average U.S. oil supply at the moment may eventually catalyze rising oil prices, which would be advantageous to the company. When compared to competitors like ExxonMobil, Chevron, and BP, the business seems to be reasonably valued from a valuation perspective, particularly when looking at PEG and PE indicators. The business stands to benefit from operational leverage as well as a possible market re-rating as energy markets normalize and supply limitations persist. The firm’s combination of industry tailwinds and enticing valuation metrics places it as a remarkable fallen angel with a positive risk/reward profile for investors looking for value in the energy sector.
According to Occidental Petroleum Corporation (NYSE:OXY), production in the Permian Basin is expected to rise by more than 15% by 2025. This is due to a modest increase across legacy positions and a full year of CrownRock contributions. It is anticipated that CrownRock assets alone will average more than 170,000 BOE per day, which is more than 5% growth. The company’s US onshore portfolio accounts for more than 75% of its oil and gas capital, with the Permian receiving a sizable share of this allocation.
9. Valero Energy Corporation (NYSE:VLO)
Analysts’ Upside Potential as of May 01: 30.37%
Valero Energy Corporation (NYSE:VLO) is among the largest independent refiners in the United States. It runs 15 refineries in the US, Canada, and the UK with a combined daily throughput capacity of 3.2 million barrels.
The firm remains well-positioned for almost any market condition due to its high-quality refining assets and location, which allows for higher feedstock flexibility. Valero Energy Corporation (NYSE:VLO) has always had an advantage because of its more efficient system of 15 refineries, which enables it to turn lower-quality feedstock into a high-value output. The business shifted to processing larger quantities of high-quality discounted domestic crude by replacing imported crude with local, building more light crude processing capacity, and investing in transportation infrastructure as domestic light crude discounts emerged.
In Q1 2025, Valero Energy Corporation (NYSE:VLO) announced a 6% raise in its quarterly cash dividend and maintained a 73% payout ratio, both of which contributed to outstanding shareholder returns. The company’s $230 million SEC unit optimization project at the St. Charles refinery, which is anticipated to start in 2026, aims to boost the production of high-value products. The operating income from the Ethanol field doubled from the $10 million achieved in the first quarter of 2024 to $20 million. Refining margins increased throughout the quarter, driven by decreased product inventories and increased demand for light products in the US compared to the same time last year.
Valero Energy Corporation (NYSE:VLO) also reopened its operations in Mexico as its import authorization was reinstated after it had been halted. The business produced $952 million in net cash from operations, including a $157 million favorable shift in working capital, showing strong cash flow management, making it one of the Best Commodity Stocks.
8. Freeport-McMoRan Inc. (NYSE:FCX)
Analysts’ Upside Potential as of May 01: 33.21%
Freeport-McMoRan Inc. (NYSE:FCX) has stakes in ten copper mines, with the largest holdings being 49% of the Indonesian copper and gold operations at Grasberg, 55% of the Cerro Verde mine in Peru, and 72% of Morenci in Arizona. By volume, it was one of the largest copper miners in the world in 2024, selling around 1.2 million metric tons of copper (its share). Furthermore, the firm sold 70 million pounds of molybdenum and roughly 900,000 ounces of gold, primarily from Grasberg. By the end of December 2024, its copper reserves spanned approximately 25 years. It is ranked eighth on our list of the Best Commodity Stocks.
Freeport-McMoRan Inc. (NYSE:FCX) had solid operational momentum in the first quarter of 2025, surpassing sales projections for copper and forecasting average quarterly copper volumes to be roughly 20% higher for the rest of the year. In the next quarters, unit net cash costs are anticipated to decrease by an average of 30%, while gold sales are projected to be almost four times Q1 levels. A premium of roughly 13% over LME prices has been observed in the U.S. copper market, which reflects tariff expectations and generates an estimated $800 million in yearly revenue for its U.S. copper sales. Smelter repairs are moving more quickly than expected in Indonesia, where the recently opened Precious Metals refinery represents a significant turning point, and solid output is expected from the Grasberg mine.
The company announced that it has successfully converted 12 out of 33 trucks at its Baghdad plant to autonomous haulage; a full fleet conversion is anticipated soon to result in considerable efficiency gains. Furthermore, Freeport-McMoRan Inc. (NYSE:FCX) is steadily advancing its low-cost leach innovation projects in the United States, with plans to increase production to 800 million pounds of copper annually from its current goal of 300 million pounds by the end of 2025.
7. Nucor Corporation (NYSE:NUE)
Analysts’ Upside Potential as of May 01: 34.80%
Nucor Corporation (NYSE:NUE) is a steel product manufacturer and one of the Best Commodity Stocks. The company’s reportable segments include steel mills, steel products, and raw materials. The steel mills segment, which produces structural steel (wide-flange beams, beam blanks, H-piling, and sheet piling), plate steel, sheet steel (hot-rolled, cold-rolled, and galvanized), and bar steel products, accounts for the majority of its revenue. The firm uses electric arc furnaces, continuous casting, and automated rolling mills to produce steel, mostly from scrap steel and scrap steel alternatives. The primary customers of the steel mills segment are manufacturers, fabricators, and steel service centers in the US, Canada, and Mexico.
In the first quarter of 2025, Nucor Corporation (NYSE:NUE)’s backlog grew significantly, with steel mill segments up more than 30% and steel products up almost 25%, showing solid demand going forward. To support its long-term growth strategy, the company reinvested close to $860 million in capital projects, some of which are projected to begin operations within the next two years. A positive earnings projection was given by the firm, which predicted much greater earnings in the second quarter due to stable shipment volumes and better realized pricing.
It is anticipated that the effective execution of trade policies, such as the extension and reinstatement of Section 232 tariffs and provisional anti-dumping charges, will directly benefit Nucor Corporation (NYSE:NUE) and support the country’s steel industry. The company has also built solid platforms in sectors like overhead doors and racking, expanding into high-growth markets through acquisitions and organic investments. These developments are anticipated to contribute to significant EBITDA growth in the years to come.
6. Vale S.A. (NYSE:VALE)
Analysts’ Upside Potential as of May 01: 37.01%
Vale S.A. (NYSE:VALE) is the biggest producer of iron ore and pellets in the world and a major global miner. The business has sold off noncore assets, including its steel, coal, and fertilizer businesses, in recent years to focus on iron ore, nickel, and copper. The bulk materials division, which mostly produces iron ore and iron ore pellets, dominates earnings. Copper mines that produce copper in concentrate and nickel mines and smelters constitute the considerably smaller base metals category. The firm sold a minority 10% ownership in its base metals business, Energy Transition Metals, in 2024. This was perhaps the first move in the process of separating iron ore from base metals. The stock has grown by more than 5% since the start of 2025, making it on our list of the Best Commodity Stocks.
In Q1 2025, Vale S.A. (NYSE:VALE) reported a 4% year-on-year growth in iron ore sales, reaching 66 million tons despite a 4% decrease in production, showing robust demand and excellent inventory management. The company’s three main iron ore expansion projects are moving along according to plan; by 2025, Vargem Grande and Capanema should have contributed a total of 40 million tons of production. EBITDA in base metals more than doubled from the same time the previous year due to increased output and better operational performance. The business also made significant cost reductions, with favorable exchange rates and operational improvements causing iron ore C1 cash expenses to drop to $21 per ton, an 11% year-over-year decrease.
Vale S.A. (NYSE:VALE) achieved a noteworthy sustainability milestone in 2023 when it met all of its energy needs in Brazil from renewable sources, two years ahead of schedule.
5. ConocoPhillips (NYSE:COP)
Analysts’ Upside Potential as of May 01: 37.28%
One of the largest independent exploration and production firms in the world by output and reserves, ConocoPhillips (NYSE:COP), generated 3.1 billion cubic feet of natural gas per day and 1.2 million barrels of oil and natural gas liquids per day in 2023, mostly from Alaska and the Lower 48 in the United States, Norway in Europe, and several countries in Asia-Pacific and the Middle East. At the end of 2023, proven reserves amounted to 6.8 billion barrels of oil equivalent.
It had a strong fourth quarter of 2024. The business reported $14.74 billion in revenue, almost $515 million more than anticipated. It exceeded forecasts by $0.15, with adjusted earnings per share of $1.98. ConocoPhillips (NYSE:COP)’s $22.5 billion purchase of Marathon in November 2024, which expanded its resource base by more than 2 billion barrels of oil and gas with an average supply cost of less than $30 per barrel, was a major highlight of the quarter. The company’s output surged 14.8% year over year after this acquisition, hitting 2.183 million barrels of oil equivalent per day in the quarter.
ConocoPhillips (NYSE:COP) has a strong financial base, making it an attractive option for income investors. The company recorded $20.3 billion in total cash from operations over the previous year, including $20.1 billion in operating cash flow. It continued to distribute $3.6 billion in dividends, showing its dedication to shareholder returns. For the ninth consecutive year, the business increased its quarterly dividend by 34% to $0.78 per share in October.
4. Devon Energy Corporation (NYSE:DVN)
Analysts’ Upside Potential as of May 01: 40.37%
Devon Energy Corporation (NYSE:DVN) is an oil and gas company that owns land in a number of the best shale plays in the United States. Although the Permian Basin accounts for around two-thirds of its production, the Anadarko, Eagle Ford, and Bakken basins each produce a significant amount of it. The firm’s net proved reserves were 2.2 billion barrels of oil equivalent as of the end of 2024. In 2024, net production averaged around 848,000 barrels of oil equivalent per day, with 73% oil and gas liquids and 27% natural gas. It is among the Best Commodity Stocks.
In Q4 2024, Devon Energy Corporation (NYSE:DVN) exceeded projections with an adjusted EPS of $1.16, which was more than the $1 estimate. The company’s revenue also surpassed projections by $155.3 million, rising 6.22% year over year to $4.4 billion. The Williston Basin business, which the oil and gas company purchased from Grayson Mill Energy in a $5 billion agreement, saw its output soar 28% YoY to 848,000 boe/d during the quarter, which was the main driver of the strong performance.
Devon Energy Corporation (NYSE:DVN) generated $3 billion in free cash flow in 2024 and maintains a solid balance sheet despite the acquisition. The company just increased its quarterly dividend by 9.1% to $0.24 per share and gave $2 billion back to its shareholders. By 2025, DVN expects to generate free cash flow at current strip pricing and pay out up to 70% of the cash return to shareholders.
3. Smurfit Westrock Plc (NYSE:SW)
Analysts’ Upside Potential as of May 01: 44.40%
Smurfit Westrock Plc (NYSE:SW) produces consumer packaging, paper goods, corrugated packaging, and other products. It is the second-largest producer in the region and makes up around 20% of the North American containerboard industry, which places it among the Best Commodity Stocks. Smurfit Kappa and WestRock, two of the biggest containerboard and paper companies in North America and Europe, respectively, merged to establish the firm in 2024. The company has substantial facilities in North America, South America, and Europe and is currently among the biggest packaging manufacturers worldwide. The company works in 40 countries and has 62 paper mills.
First-quarter 2025 performance from Smurfit Westrock Plc (NYSE:SW) was strong and largely exceeded analyst estimates. First-quarter net sales were $7.66 billion, which is similar to pro forma revenues from the previous year. However, as a result of the quarter’s growth in North America and Latin America, the business recorded an adjusted EBITDA margin of 16.4%, which was better than a year ago. Higher selling prices in North America and cost reductions fueled margin expansion throughout the quarter, despite the impact on volumes across a large portion of its business.
Notably, Smurfit Westrock Plc (NYSE:SW) is on pace to reach its $400 million target for merger-related synergies from the previous year. The management also mentioned that they believe there is a chance to surpass that figure because the initial outcomes have been encouraging.
2. Teck Resources Limited (NYSE:TECK)
Analysts’ Upside Potential as of May 01: 86.49%
Teck Resources Limited (NYSE:TECK) is a diversified natural resources company, engaged in mining and mineral development, including coal for the steelmaking industry, copper, zinc, and energy. It is one of the best commodity stocks on our list. China plays a crucial role in the company’s operations. These commodities’ demand is linked to fixed-asset investment, except for lead. The firm is significantly expanding its copper output to capitalize on the rising demand brought on by trends like electrification and decarbonization.
Teck Resources Limited (NYSE:TECK)’s first-quarter 2025 EBITDA of C$930 million more than doubles that of the previous year because of higher copper and zinc prices and volumes. The production of copper increased by 7% to 106,000 tons, and net cash unit costs grew by $0.32 per pound to $2.04 per pound. Even though there are still issues ramping up the Quebrada Blanca 2 copper mine to capacity, the market approved, with shares up 4% on the day. Improved cash flow and profitability were a result of strong operational performance at important locations, such as Highland Valley, Carmen de Andacollo, and Trail.
Teck Resources Limited (NYSE:TECK)’s balance sheet remained strong, with $10 billion in total liquidity and $764 million in net cash. It has shown a dedication to shareholder returns by paying out $568 million in dividends and share buybacks so far this year.
1. Canadian Natural Resources Limited (NYSE:CNQ)
Analysts’ Upside Potential as of May 01: 107.47%
A prominent producer of natural gas and crude oil, Canadian Natural Resources Limited (NYSE:CNQ) maintains operations across its primary areas, which include Offshore Africa, Western Canada, and the UK part of the North Sea. The energy company’s steady dividend payments are supported by a solid asset portfolio that includes a well-diversified production mix and long-lasting, low-decline resources. These resources enable the business to maintain operational flexibility and produce steady cash flow even when commodity markets are volatile.
In the most recent quarter, Canadian Natural Resources Limited (NYSE:CNQ) generated over $3.4 billion in operating cash flow, up from $3 billion the year before, showing its strong financial position. The business generated $4.5 billion in free cash flow by the end of fiscal 2024. Through dividends and share buybacks, CNQ was able to return $1.7 billion to shareholders as a result of its exceptional cash performance, making it the Best Commodity Stock.
RBC Capital maintained its Outperform rating on Canadian Natural Resources Limited (NYSE:CNQ)’s shares and increased its price objective from C$62 to C$63. In a research note, the analyst informs investors that the firm’s bullish outlook on the company is a reflection of its strong leadership team, shareholder alignment, free cash flow generation throughout cycles, best-in-class operating performance, and abundant shareholder returns.
Overall, CNQ ranks first among the Top 15 Commodity Producers with the Highest Upside Potential. While we acknowledge the potential of commodity producer companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CNQ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
