10 Most Undervalued High Quality Stocks to Buy According to Analysts

1. ConocoPhillips (NYSE:COP) 

Forward P/E Ratio: 11.04 

Number of Hedge Fund Holders: 86

Analyst Upside Potential: 43.88%

ConocoPhillips (NYSE:COP) explores, produces, transports, and markets various energy resources such as crude oil, natural gas, natural gas liquids, and liquefied natural gas. It operates in several regions including Alaska, the contiguous United States, Canada, Europe, the Middle East, North Africa, Asia Pacific, and other international locations.

On February 17, Evercore ISI analyst Stephen Richardson reiterated a Buy rating on the stock with a price target of $165.00. During the fiscal fourth quarter of 2024, ConocoPhillips (NYSE:COP) achieved a 4% year-over-year production growth, exceeding their guidance. The growth was driven by a 5% increase in the Lower 48 region and a 3% increase in Alaska and international operations. In a major strategic development, the company completed the acquisition of Marathon Oil, adding high-quality assets to its portfolio. It expects to achieve over $1 billion in synergies by the end of 2025. Looking ahead, the company plans to reduce capital spending by over 15% while maintaining low single-digit production growth. The management is also investing in high-return projects and expects significant cash flow increases from these investments starting in 2026. It is the most undervalued high-quality stock to buy according to analysts.

While we acknowledge the potential of ConocoPhillips (NYSE:COP) to grow, our conviction lies in the belief that 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 COP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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