10 Oversold Canadian Stocks to Buy Right Now

1) Veren Inc. (NYSE:VRN)

% Decline Over Past Year: ~25%

Forward P/E (As of October 21): 8.01x

Number of Hedge Fund Holders: 26

Veren Inc. (NYSE:VRN) is engaged in exploring, developing, and producing oil and gas properties in Canada and the United States.

One of the key factors helping Veren Inc. (NYSE:VRN)’s success revolves around its use of advanced drilling and completion techniques. The company continues to implement higher intensity ‘elevator’ fracs, which should materially improve future profitability. Market experts opine that these advanced fracking techniques can enhance the value of the company’s undrilled land, potentially resulting in multiple expansion.

The adoption of such innovative technologies should help Veren Inc. (NYSE:VRN) improve its current production and place it well for future growth. With the company’s focus on refining and optimizing these techniques, it can see further improvements in well performance and economic returns. As Veren Inc. (NYSE:VRN) has been refining its operations and is benefiting from rapid well payouts, significant improvement in future profitability is expected.

Considering its success in the Montney formation, Veren Inc. (NYSE:VRN) now has opportunities to expand its operations, either through the acquisition of new acreage or by partnering with other companies to establish additional resources. Moreover, the company’s demonstrated ability to implement advanced drilling and completion techniques places it favorably to exploit future technological advancements in the broader industry.

Veren Inc. (NYSE:VRN) announced it has entered into a strategic long-term partnership with Pembina Gas Infrastructure associated with certain infrastructure assets in Alberta Montney. The company will receive net cash proceeds of $400 million related to this transaction. It is gaining operatorship of additional oil battery sites, which will enhance efficiencies and reduce operating costs.

While we acknowledge the potential of VRN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than VRN 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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