10 Best Undervalued Energy Stocks To Buy According to Hedge Funds

1. Exxon Mobil Corporation (NYSE:XOM) 

Number of Hedge Fund Investors: 86

Forward P/E Ratio as of December 16: 12.50

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest publicly traded energy companies, with operations spanning oil and gas exploration, production, refining, and chemicals. The company serves global markets with fuels, lubricants, and petrochemical products.

Exxon Mobil Corporation (NYSE:XOM) is actively investing in low-carbon solutions to address the global energy transition. The company is developing the world’s largest low-carbon hydrogen production facility in Baytown, Texas, which will produce 1 billion cubic feet per day of carbon-free hydrogen, with 98% of CO2 emissions captured and stored. This project has garnered significant interest, with partnerships from ADNOC and Mitsubishi. Additionally, Exxon Mobil Corporation (NYSE:XOM) is advancing its carbon capture and storage (CCS) capabilities and has secured a 271,000-acre offshore CO2 storage site, through an agreement with the Texas General Land Office.

Exxon Mobil Corporation (NYSE:XOM) is also building a natural gas plant to power a data center and then use its carbon capture and storage technology to reduce the emissions of the plant by 90%. The company estimates that decarbonizing AI data centers could represent up to 20% of its addressable market for carbon capture and storage by 2050.

While we acknowledge the potential of Exxon Mobil Corporation (NYSE:XOM) to grow, 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 more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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