11 Best Undervalued Energy Stocks to Invest in Now

1. Exxon Mobil Corp. (NYSE:XOM)

Forward P/E Ratio as of April 10: 13.77

Number of Hedge Fund Holders: 104

Exxon Mobil Corp. (NYSE:XOM) manufactures, trades, transports, and sells crude oil, natural gas, petroleum products, petrochemicals, and other specialty products. It’s also pursuing lower-emission and other business opportunities, such as carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium.

The acquisition of Pioneer assets has strengthened the company’s position in the Permian basin. In 2024, the company achieved record production from both its Heritage ExxonMobil assets and the newly acquired Pioneer assets. The combined strength of these assets is projected to yield an average of more than $3 billion per year in synergies. Production is expected to increase from 1.5 million oil-equivalent barrels per day at the end of 2024 to 2.3 million barrels per day by 2030. This represents ~50% growth.

The Permian Basin is a key contributor to Exxon Mobil Corp.’s (NYSE:XOM) overall upstream portfolio, which achieved the highest-ever production from its advantaged assets and the highest liquid production from its overall portfolio in more than 40 years. The company’s focus on low-cost supply, low emissions intensity, and high returns in the Permian ensures that this segment will continue to drive growth.

While we acknowledge the growth potential of Exxon Mobil Corp. (NYSE:XOM), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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