We recently published a list of Why These Energy Stocks are Losing This Week. In this article, we are going to take a look at where U.S. Energy Corp. (NASDAQ:USEG) stands against other energy stocks that are losing this week.
2024 was a tough year for the global energy industry, the result of a rapidly evolving regulatory and geopolitical landscape. The broader energy sector ended last year with an uptick of just 5.72%, significantly lagging behind gains of 25% by the wider market.
READ ALSO: 12 Best Oil Refinery Stocks To Invest In According to Analysts and 11 Best Natural Gas Stocks To Buy Now
The oil and gas industry, a significant segment of the overall energy sector and a major contributor to the global GDP, is going through a tough period as it battles declining prices, a shifting global political landscape, and decreasing demand due to the ongoing energy transition towards renewables. The US Energy Information Administration stated last month that it expects Brent crude oil prices to fall 8% to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026, as supply outpaces demand.
The ongoing AI revolution and the accompanying data center boom, which has been widely expected to drive global energy demand, was also shaken up last month after the Chinese start-up DeepSeek revealed its energy and capital-efficient AI model. This cast serious doubt on a projected surge in US electricity demand, causing a wide number of energy stocks to record some of the biggest one-day drops in recent history.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between February 14 to February 24, 2025.
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 hand holding a crude oil sample from a well in Permian Basin.
U.S. Energy Corp. (NASDAQ:USEG)
Share Price Decline Between Feb. 14 – Feb. 24: 10.34%
U.S. Energy Corp. (NASDAQ:USEG) is an independent company that identifies and strategically invests in upstream oil and gas assets with a primary focus on oil.
Shares of U.S. Energy (NASDAQ:USEG) have surged by over 65% over the last year. However, the company has recently been struggling after its Q3 2024 revenue fell sharply by 43.29% YoY and missed market expectations. The company also reported a net loss of $2.2 million, or a loss of $0.08 per diluted share, during the quarter.
The stock price of U.S. Energy (NASDAQ:USEG) also witnessed a downturn after investors reacted negatively to the public offering of approximately 4.2 million common shares priced at $2.65 each, intended for funding industrial gas developments.
Overall, USEG ranks 8th on our list of energy stocks that are losing this week. While we acknowledge the potential for energy stocks, 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 more promising than USEG 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.
