12 Most Undervalued Large Cap Stocks to Buy Now

2. ConocoPhillips (NYSE:COP)

Forward Price-to-Earnings Ratio as of March 4: 11.16

Number of Hedge Fund Holders: 86

ConocoPhillips (NYSE:COP) is a global energy company that is engaged in the exploration, production, transportation, and marketing of crude oil, natural gas, LNG, and natural gas liquids. Operating across six segments, its portfolio spans unconventional and conventional assets in North America, Europe, Asia, and Australia, along with global LNG developments and oil sands assets in Canada.

The company’s Lower 48 operations are a major source of its production growth. This refers to the oil and gas exploration and production activities within the contiguous 48 states of the US, excluding Alaska and Hawaii. In 2024, it increased production in this region by 5%, which contributed to a total company growth of 4%. The company plans to continue this growth in 2025. In Q4 2024, the Lower 48 produced 1,308,000 barrels of oil equivalent per day, with the Permian basin contributing 833,000, Eagle Ford 296,000, and Bobcat 151,000 barrels.

To improve efficiency, ConocoPhillips (NYSE:COP) plans to reduce capital spending in the Lower 48 by $1.4 billion in 2025. This will be led by cost savings from its acquisition of Marathon and improvements in drilling and completion. The company expects to save over $1 billion from this acquisition by the end of 2025, with over half of those savings already factored into the 2025 budget.