10 Most Undervalued Growth Stocks to Buy Now

7. ConocoPhillips (NYSE:COP)

Forward P/E ratio: 11.38

Revenue CAGR last 5 years: 28.54%

Number of Hedge Fund Holders: 86

ConocoPhillips (NYSE:COP) focuses on the exploration, production, transportation, and marketing of crude oil, natural gas liquids, and liquefied natural gas. The company has a wide geographic presence across North America, Europe, Asia, and North Africa, making it a significant player in the global energy market, and especially in the US share plays.

ConocoPhillips (NYSE:COP) delivered strong performance in 2024, achieving 4% production growth YoY, exceeding their full-year guidance range. The company demonstrated robust performance across its portfolio with 5% growth in the Lower 48 states and 3% growth in Alaska and international operations, while delivering a 123% preliminary organic reserve replacement ratio. The company closed the Marathon acquisition in late November, which added high-quality, low-cost supply inventory to their portfolio, with expectations to deliver more than $1 billion of run-rate synergies by the end of 2025.

Looking ahead to 2025, ConocoPhillips (NYSE:COP) plans to deliver low single-digit production growth with $12.9 billion of CapEx, while reducing capital spending by over 15% YoY on a pro forma basis. The company announced a target to return $10 billion to shareholders in 2025, consisting of $4 billion in ordinary dividends and $6 billion in buybacks. Additionally, the company expects $3.5 billion incremental cash flow from several new projects once online, leading to approximately $6 billion of total incremental annual free cash flow relative to 2025. With strong guidance ahead and a forward P/E of only 11.38, COP is one of the most undervalued growth stocks to invest in.