8 Best Value Penny Stocks to Invest in Now

2. Kosmos Energy Ltd (NYSE:KOS)

Price as of March 3: $2.81

Forward P/E ratio: 3.76

Analysts upside potential: 82.21%

Number of hedge fund holders: 27

Kosmos Energy Ltd (NYSE:KOS) is a full-cycle deepwater oil and gas exploration and production company. The company owns assets with production in Ghana, Equatorial Guinea, and the US Gulf of Mexico, as well as significant natural gas projects off the coasts of Mauritania and Senegal.

Kosmos Energy Ltd (NYSE:KOS) recently achieved a major milestone: the Greater Tortue Ahmeyim (GTA) LNG project offshore Mauritania and Senegal produced its first gas in December 2024 and its first LNG in February 2025. Once fully commissioned, the project is expected to produce around 2.3 million tons of LNG per annum. This breakthrough positions the region to become a strategic LNG production hub in West Africa.

In its fourth quarter 2024 results, Kosmos’ revenue came in at $398 million and the company generated $176 million in cash from operating activities. The company has a forward P/E ratio of just 3.76—well below industry averages—and analysts project an 82.21% upside from its current price of $2.81. Even better, Kosmos Energy Ltd (NYSE:KOS) is pursuing a disciplined capital allocation strategy (a 50% reduction in capital expenditure for 2025), and it recently transitioned from development to cash flow generation. This is the reason why this stock is in the top five of our list of Best Value Penny Stocks to Invest in Now.