8 Most Undervalued Natural Gas Stocks To Buy According To Analysts

1. Devon Energy Corporation (NYSE:DVN) 

Upside Potential: 45.87%

Forward P/E Ratio as of December 9: 6.86

Number of Hedge Fund Investors: 41

Stock Price as of December 9: $34.99

Devon Energy Corporation (NYSE:DVN) is a leading independent oil and gas exploration and production company based in the United States. The company has a strong presence in key US basins, including the Delaware Basin, Williston Basin, and Powder River Basin.

Devon Energy Corporation (NYSE:DVN) is actively focusing on maximizing its natural gas realizations, particularly in the Permian Basin. The company has made significant investments in infrastructure to transport gas from the Waha hub to the Gulf Coast. The recent completion of the Matterhorn Express Pipeline, which is a 580-mile natural gas pipeline that transports gas from the Permian Basin to Katy, Texas with a capacity of 2 billion cubic feet per day, is a prime example of this strategy. By moving gas to the Gulf Coast, Devon Energy Corporation (NYSE:DVN) aims to reduce exposure to regional price fluctuations.

To drive further growth in production and efficiency, Devon Energy Corporation (NYSE:DVN) is also exploring and implementing advanced technologies. One key area of focus is the deployment of e-frac (electric fracturing) and simul-frac (simultaneous fracturing) techniques. The company is also investing in data analytics and machine learning to optimize well placement and completion designs, ensuring that each well is maximized for production.

While we acknowledge the potential of Devon Energy Corporation (NYSE:DVN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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