12 High Growth Low PE Stocks to Buy

3. Civitas Resources Inc. (NYSE:CIVI)

5-Year Revenue CAGR: 75.85%

Number of Hedge Fund Holders: 48

Forward P/E as of January 29: 5.03

Civitas Resources Inc. (NYSE:CIVI) is an exploration and Production Company that explores, develops, and produces oil and natural gas in the Rocky Mountain region of the Denver-Julesburg Basin of Colorado. While the stock was down by about 23% in 2024, it has started 2025 on a roll amid a spike in commodity prices.

Civitas Resources Inc. (NYSE:CIVI) has made a name for itself as a major producer in the Permian and DJ Basin, two of the most productive oil-producing areas in the US. The company’s strategic focus on these areas has positioned it to capitalize on the strong demand for domestic energy resources, as evidenced by its impressive gross profit margin of 74.19% and revenue growth of 59.18% over the last 12 months.

Significant gains in production efficiency and cost reduction should result from Civitas’ emphasis on operational enhancements and creative well designs. Civitas Resources Inc. (NYSE:CIVI) is able to keep a healthy balance sheet, invest in expansion prospects, and give money back to shareholders thanks to the high FCF yield. The company may be able to fund organic growth initiatives, pursue accretive acquisitions, or raise dividend payments in the future thanks to its strong financial position, all of which could help create long-term shareholder value.