From Yahoo Finance: 2025-05-05 09:34:00

The energy sector is undervalued by 13.1%, impacted by the global economic slowdown due to the trade war and falling crude oil prices. OPEC+ announced a larger output increase for June, driving down oil prices. Despite oil’s outlook, the AI boom is fueling growth in energy sectors like data centers.

EOG Resources, Inc. (NYSE:EOG) beat profit estimates in Q1 2025 but saw a revenue decline. The company returned $1.3 billion to shareholders, declaring a quarterly cash dividend. EOG plans to reduce capital expenditure due to tariff uncertainty while aiming for oil and overall production growth in 2025.

EOG ranks 7th among the most undervalued energy stocks by hedge funds. While EOG shows potential, AI stocks are seen as more promising for higher returns in a shorter time frame. An AI stock trading at less than 5 times earnings is highlighted for potential massive gains. Check out the report for more details.

Read more: One of the Most Undervalued Energy Stocks to Buy According to Hedge Funds