11 Best Mid-Cap Value Stocks to Buy According to Analysts

3. Atlas Energy Solutions Inc. (NYSE:AESI)

Fwd. P/E: 13.7

Potential Upside: 39%

Number of Hedge Fund Holders: 10

Atlas Energy Solutions Inc. (NYSE:AESI) is a leading provider of proppant and proppant logistics services for the oil and gas industry. The company specializes in producing and distributing high-quality frac sand, a critical component in hydraulic fracturing operations. It is exclusively focused on serving customers in the Permian Basin of West Texas and New Mexico, the most active oil and natural gas-producing region in North America.

In fiscal year 2024, Atlas Energy Solutions Inc. (NYSE:AESI) generated $251.3 million in free cash flow, reflecting a solid 24% adjusted free cash flow margin. However, this was a decline from the 47% margin reported in 2023, primarily affected by its acquisitions. For the fourth quarter, the company posted revenue of $271.3 million and earnings per share (EPS) of $0.13, both of which fell short of consensus estimates. Despite the earnings miss, Atlas announced a quarterly dividend of $0.25 per share, translating to a healthy annual dividend yield of 5.4%.

The company’s emphasis on efficiency and cost reduction through integrated supply chain solutions positions it well to capitalize on sustained demand for energy resources. While pricing pressures in frac sand remain a headwind, the company’s outlook is underpinned by ramp-up of its overland conveyor system, the Dune Express, and progress on its semi-autonomous oilfield logistics network. However, the stock currently trades near its 52-week low of $17.02, with a forward P/E ratio of 13.7, which is below the sector average of around 20 times.

On January 28, Benchmark analyst Kurt Hallead raised the price target on the shares to $28 from $23 previously based on his revised estimates after the company announced the acquisition of Moser Energy Systems for $220 million. The analyst maintained his Buy rating.