10 Most Oversold Penny Stocks to Buy According to Analysts

8. Kosmos Energy Ltd (NYSE:KOS)

Price: $2.23

6-Month Performance: -47.03%

Number of Hedge Fund Holders: 27

Analyst Upside Potential: 146.64%

Kosmos Energy Ltd (NYSE:KOS) is a full-cycle, deepwater oil and gas exploration and production company specializing in offshore Atlantic Margin operations. On February 25, Analyst Matthew Smith from Bank of America Securities maintains a Buy rating on the stock with a price target of $6.

The analyst highlighted that the company is nearing a major FCF inflection point due to the Tortue LNG project’s first cargo shipment, which has shown strong early production metrics. Smith projects a 20% FCF yield in 2025, rising to 35% in 2026, driven by reduced capital expenditures and stable oil prices. Moreover, he also highlighted significant operational strengths of the company including debt reduction and long-term resource base.

Kosmos Energy Ltd (NYSE:KOS) had a challenging fiscal fourth quarter of 2024, as the production fell due to water injection reliability issues and power generation problems. Looking ahead, management expects flat production quarter-over-quarter due to planned maintenance. It is one of the most oversold penny stocks to buy according to analysts.