We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where ConocoPhillips (NYSE:COP) stands against other best very cheap stocks to buy right now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
Also Read: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An underground network of pipelines transporting oil through an expansive terrain.
ConocoPhillips (NYSE:COP)
P/E Ratio: 10.85
Average Analysts Upside: 32.97%
ConocoPhillips (NYSE:COP) is one of the largest independent E&P companies based on oil and natural gas production and proved reserves. The company is engaged in the exploration, production, transportation, and marketing of crude oil, natural gas, natural gas liquids, and LNG worldwide.
ConocoPhillips (NYSE:COP) had a solid 2024 as its total production increased by 4% compared to 2023. The acquisition of Marathon in late November 2024 added high-quality, low-cost supply inventory to the company’s portfolio. The company maintained a strong cash position, collecting over $20 billion in operating cash flow for FY2024, while total cash from operations also surpassed $20 billion.
The company is committed to reducing its carbon footprint after achieving the Oil and Gas Methane Partnership 2.0 Gold Standard designation in 2024. It aims to reduce its greenhouse gas emissions intensity by 50 to 60% by 2030 and obtain a near-zero methane emissions intensity by the end of the decade. This goal will allow the company to explore new opportunities in the rising carbon-free energy sector.
Given the current commodity prices, ConocoPhillips returned more than $9 billion of capital to its shareholders in FY2024 and expects to return over $10 billion in 2025.
Overall, COP ranks 2nd on our list of best very cheap stocks to buy right now. While we acknowledge the potential of COP to grow, our conviction lies in the belief that 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 more promising than COP 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.