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 Permian Resources Corporation (NYSE:PR) 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 wellhead, showing off the company’s production of oil and natural gas.
Permian Resources Corporation (NYSE:PR)
10-Year Revenue CAGR: 43.85%
Number of Hedge Fund Holders: 54
Average Upside Potential as of April 21: 53.78%
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company that develops crude oil and associated liquids-rich natural gas reserves in the US. Its assets focus on the Delaware Basin, which is a sub-basin of the Permian Basin. Its properties consist of acreage blocks in Reeves County in West Texas and Lea County in New Mexico.
The company completed $1.2 billion in acquisitions in 2024, and added 50,000 net acres and 20,000 BOE per day. For 2025, the company has locked in prices for ~25% of its oil production at $73 per barrel. It can still generate free cash flow after paying dividends even if oil prices drop to around $40 per barrel. Between 2023 and 2025, the company expects that its production, adjusted for debt, will increase by ~50%, and its free cash flow per share will ~2x.
Permian Resources Corporation (NYSE:PR) drilled 275 wells in 2024, with 85 wells planned for 2025. In Q4 2024, the company’s oil production was 171,000 barrels of oil per day, where a total production was 368,000 BOE per day. For 2025, the total production is anticipated to average 300,000 to 380,000 BOE per day, with oil production between 170,000 and 175,000 barrels per day.
Aristotle Small/Mid Cap Equity Strategy stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q3 2024 investor letter:
“Permian Resources Corporation (NYSE:PR) is a Texas-based oil & gas exploration & production company with a large acreage position and deep inventory of high return potential drilling locations in the core of the Permian Basin. We expect management to continue to execute on its strategy of optimizing returns, diligently allocating capital to new opportunities, and returning excess capital to shareholders.”
Overall, PR ranks 8th on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of PR 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 PR 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.