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3 Top-Ranked Energy Stocks Cheap Enough to Turn Heads Right Now
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Key Takeaways
EC said a $1 Brent change could raise consolidated EBITDA by COP 700B; Brent above $95 helps.
DINO benefits from strong refining margins as capacity stays tight & inventories low.
NBR expects Lower 48 rig day rates to reach mid-$30,000 through 2027, up from low-$30,000.
The oil-energy sector remains in the spotlight, with the crude pricing environment now in its glorious days. Uncertainties stemming from the Iran war have been aiding the commodity’s price, with the West Texas Intermediate (“WTI”) crude hovering around $90 per barrel.
High price of the commodity is a boon for upstream operations and, in turn, is increasing demand for drilling and oilfield services. The refining business is also performing well, as global fuel demand remains strong while supply is limited. Thus, with overall energy businesses remaining favorable, let’s focus on three stocks that are undervalued at current levels: Ecopetrol S.A. (EC - Free Report) , HF Sinclair Corporation (DINO - Free Report) and Nabors Industries Ltd. (NBR - Free Report) . Let’s delve deeper into the stocks.
3 Undervalued Energy Stocks in the Spotlight
Ecopetrol is an integrated energy giant in the American continent. The ongoing strength in oil prices is likely to have been aiding the company’s exploration and production activities. On its first-quarter 2026 earnings call, the company noted that a $1 change in Brent prices could increase its consolidated EBITDA by COP 700 billion. Thus, a Brent price above $95 per barrel is highly favorable for EC’s operations. Rising refining margin is also aiding its bottom line.
From a valuation standpoint, Ecopetrol trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.15X. This is below the broader energy-sector average of 6.81X. Hence, the stock, sporting a Zacks Rank #1 (Strong Buy), is undervalued now.
Image Source: Zacks Investment Research
HF Sinclair is a well-known refining player with the majority of its earnings generating from this business. The global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not available in abundance, refining margins for refiners like DINO are quite strong.
Coming to the valuation story, DINO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.55X. This is also below the broader energy-sector average. Hence, this Zacks Rank #1 stock is also undervalued now.
Image Source: Zacks Investment Research
Nabors Industries is a leading energy company known for providing drilling technology and services. In the Lower 48, NBR has a large land-rig footprint and exposure in the international market. Theongoing high oil prices are likely to have been aiding exploration and production activities, which in turn is expected to have a positive impact on demand for NBR’s drilling technology and services. In its first-quarter 2026 earnings call transcript, the company mentioned that in the Lower 48, it is expecting its rig day rates to rise to the mid-$30,000 range through 2027 from the low-$30,000 range.
Investors should know that NBR trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.21X. Currently, the stock carries a Zacks Rank #2 (Buy) and is undervalued now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
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3 Top-Ranked Energy Stocks Cheap Enough to Turn Heads Right Now
Key Takeaways
The oil-energy sector remains in the spotlight, with the crude pricing environment now in its glorious days. Uncertainties stemming from the Iran war have been aiding the commodity’s price, with the West Texas Intermediate (“WTI”) crude hovering around $90 per barrel.
High price of the commodity is a boon for upstream operations and, in turn, is increasing demand for drilling and oilfield services. The refining business is also performing well, as global fuel demand remains strong while supply is limited. Thus, with overall energy businesses remaining favorable, let’s focus on three stocks that are undervalued at current levels: Ecopetrol S.A. (EC - Free Report) , HF Sinclair Corporation (DINO - Free Report) and Nabors Industries Ltd. (NBR - Free Report) . Let’s delve deeper into the stocks.
3 Undervalued Energy Stocks in the Spotlight
Ecopetrol is an integrated energy giant in the American continent. The ongoing strength in oil prices is likely to have been aiding the company’s exploration and production activities. On its first-quarter 2026 earnings call, the company noted that a $1 change in Brent prices could increase its consolidated EBITDA by COP 700 billion. Thus, a Brent price above $95 per barrel is highly favorable for EC’s operations. Rising refining margin is also aiding its bottom line.
From a valuation standpoint, Ecopetrol trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.15X. This is below the broader energy-sector average of 6.81X. Hence, the stock, sporting a Zacks Rank #1 (Strong Buy), is undervalued now.
HF Sinclair is a well-known refining player with the majority of its earnings generating from this business. The global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not available in abundance, refining margins for refiners like DINO are quite strong.
Coming to the valuation story, DINO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.55X. This is also below the broader energy-sector average. Hence, this Zacks Rank #1 stock is also undervalued now.
Nabors Industries is a leading energy company known for providing drilling technology and services. In the Lower 48, NBR has a large land-rig footprint and exposure in the international market. Theongoing high oil prices are likely to have been aiding exploration and production activities, which in turn is expected to have a positive impact on demand for NBR’s drilling technology and services. In its first-quarter 2026 earnings call transcript, the company mentioned that in the Lower 48, it is expecting its rig day rates to rise to the mid-$30,000 range through 2027 from the low-$30,000 range.
Investors should know that NBR trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.21X. Currently, the stock carries a Zacks Rank #2 (Buy) and is undervalued now. You can see the complete list of today’s Zacks #1 Rank stocks here.