We recently published a list of 10 Oversold Stocks to Buy in 2025 Amid Inflation Fears. In this article, we are going to take a look at where Civitas Resources, Inc. (NYSE:CIVI) stands against other oversold stocks to buy in 2025 amid inflation fears.
The stock market continues to face significant volatility, with major indices continuing their decline from last week. The S&P 500 is down nearly 2%, while the Nasdaq is equally struggling at over 2.5% in the red.
The implementation of new tariffs had already spooked the market. However, it was dealt an additional blow as the core Personal Consumption Expenditures index reading came in hotter than expected. Inflation and recession concerns are dominating the market, but this also presents an opportunity for outperformance.
Stocks that are oversold as a result of the current dip present a great opportunity for outperformance in 2025. We decided to come up with a list of such stocks.
To ensure that these stocks were suitable for a bear market, were it to persist, we also added an additional criterion of a strong dividend yield so that investors can accumulate dividends while they wait for a market turnaround. For this list, we only considered stocks with a market cap of at least $2 billion that are down considerably since the start of the year.
A close up of a tanker truck transporting crude oil, natural gas liquids, and natural gas.
Civitas Resources, Inc. (NYSE:CIVI)
Civitas Resources, Inc. (NYSE:CIVI) operates as a production and exploration company that specializes in the development, acquisition, and production of crude oil and liquids-rich natural gas. The stock is down 24% this year.
CIVI stock is considerably undervalued if one goes by the analysts’ consensus. For instance, Wall Street has the highest target price of $91 on the stock, a significant upside from current levels. A major part of the recent price drop came after a disappointing Q4 earnings announcement.
Despite this slight miss, Civitas Resources (NYSE:CIVI) reduced operating costs and grew total volumes. The company generated a hefty amount of free cash flow and returned 70% of FCF to its shareholders. It has guided for decreased production in Q1 but the growth is projected to rebound in the middle of this year. Investors betting on a turnaround will have high hopes from the new management after both the COO and CTO were fired last month.
There are a lot of concerns with the company’s future prospects but the stock price now reflects most of them, offering a good buying opportunity.
Overall, CIVI ranks 7th on our list of oversold stocks to buy in 2025 amid inflation fears. While we acknowledge the potential of CIVI as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CIVI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
