We recently published a list of the 11 Most Promising Long-Term Stocks According to Analysts. In this article, we are going to take a look at where Civitas Resources, Inc. (NYSE:CIVI) stands against other promising long-term stocks.
On March 31, Banrion’s Shana Sissel recently appeared on CNBC’s ‘Power Lunch’ to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration’s habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors.
Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles.
Our Methodology
We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Note: All data was sourced on April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of a tanker truck transporting crude oil, natural gas liquids, and natural gas.
Civitas Resources, Inc. (NYSE:CIVI)
10-Year Revenue CAGR: 25.01%
Number of Hedge Fund Holders: 47
Average Upside Potential as of April 21: 60.57%
Civitas Resources, Inc. (NYSE:CIVI) acquires, develops, and produces crude oil and associated liquids-rich natural gas. Its assets include DJ Basin assets that comprise ~356,800 net acres located in Colorado. The Permian Basin assets comprise 120,400 net acres located in Texas and New Mexico. Its Permian Basin operations are the primary driver of its growth.
In 2024, the Permian Basin operations saw advancements like a 15% reduction in Midland Basin well costs, a ~20% increase in daily drilling footage, and a 50% surge in daily completion throughput. A recent bolt-on acquisition added 19,000 acres and 130 new locations in the Midland Basin. These efforts have added ~two years of future development to the company’s Permian business unit.
Civitas Resources, Inc. (NYSE:CIVI) now has an inventory of 1,200 development locations in the Permian. For 2025, the company is increasing its capital allocation to the Delaware Basin within its Permian program, with plans to operate 3 of 4 Permian rigs in the region soon. To further enhance its Permian business, the company plans to sell $300 million worth of its DJ Basin assets in 2025.
Overall, CIVI ranks 7th on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of CIVI as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than 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.
