12 Most Promising Energy Stocks According to Analysts

4) Diamondback Energy, Inc. (NASDAQ:FANG)

Average Upside Potential: 36.6%

Number of Hedge Fund Holders: 49

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, which is engaged in acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Mizuho Securities analyst Nitin Kumar CFA maintained a bullish stance on the company’s stock, giving a “Buy” rating. The rating is based on Diamondback Energy, Inc. (NASDAQ:FANG)’s strategic operational plans and robust financial metrics.

The company is anticipated to maintain its production levels while, at the same time, managing costs effectively. Furthermore, Diamondback Energy, Inc. (NASDAQ:FANG)’s equity investments and asset management strategies, mainly through its Viper subsidiary, can bolster financial health and support its deleveraging efforts. The company’s consistent activity in the Permian basin with potential M&As continues to bolster its market position.

While the broader energy sector has been witnessing challenges from commodity price volatility and elevated pressure for environmental sustainability, Diamondback Energy, Inc. (NASDAQ:FANG)’s focus on the Permian Basin, renowned for low-cost production, places it well. Its exploration into gas power generation and water management showcases the forward-thinking approach to diversification and lower costs.