Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Oil, Gas & Consumable Fuels industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Oil, Gas & Consumable Fuels Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Oil, Gas & Consumable Fuels Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Oil, Gas & Consumable Fuels industry for Monday, October 14, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Oil, Gas & Consumable Fuels industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Black Stone Minerals, L.P.’s Value Grade

Value Grade:

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Black Stone Minerals, L.P. has a Value Score of 61, which is considered to be undervalued.

When you look at Black Stone Minerals, L.P.’s price-to-sales ratio at 6.53 compared to the industry median at 1.71, this company has a higher price relative to revenue compared to its peers. This could make Black Stone Minerals, L.P.’s stock less attractive for value investors.

Black Stone Minerals, L.P.’s price-earnings ratio is 10.10 compared to the industry median at 11.30. This means it has a lower share price relative to earnings compared to its peers. This could make Black Stone Minerals, L.P. more attractive for value investors.

Now, let’s assess Black Stone Minerals, L.P.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.8, when compared to the industry median of 5.8, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Black Stone Minerals, L.P.’s shareholder yield is higher than its industry median ratio of 4.50%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Black Stone Minerals, L.P.’s price-to-book ratio is higher than its industry median ratio of 1.41. This could make Black Stone Minerals, L.P. less attractive to investors looking for a new addition to their portfolio.

CNX Resources Corporation’s Value Grade

Value Grade:

CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CNX Resources Corporation has a Value Score of 62, which is considered to be undervalued.

CNX Resources Corporation’s price-earnings ratio is 11.8 compared to the industry median at 11.3. This means that it has a higher price relative to its earnings compared to its peers. This makes CNX Resources Corporation less attractive for value investors.

CNX Resources Corporation’s price-to-book ratio is higher than its peers. This could make CNX Resources Corporation less attractive for value investors when compared to the industry median at 1.41.

You can read more about CNX Resources Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Murphy Oil Corporation’s Value Grade

Value Grade:

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Murphy Oil Corporation has a Value Score of 94, which is considered to be undervalued.

Murphy Oil Corporation’s price-earnings ratio is 9.4 compared to the industry median at 11.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Murphy Oil Corporation more attractive for value investors.

Murphy Oil Corporation’s price-to-book ratio is higher than its peers. This could make Murphy Oil Corporation less attractive for value investors when compared to the industry median at 1.41.

You can read more about Murphy Oil Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

OPAL Fuels Inc.’s Value Grade

Value Grade:

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

OPAL Fuels Inc. has a Value Score of 65, which is considered to be undervalued.

OPAL Fuels Inc.’s price-earnings ratio is 51.8 compared to the industry median at 11.3. This means that it has a higher price relative to its earnings compared to its peers. This makes OPAL Fuels Inc. less attractive for value investors.

OPAL Fuels Inc.’s price-to-book ratio is higher than its peers. This could make OPAL Fuels Inc. less attractive for value investors when compared to the industry median at 1.41.

You can read more about OPAL Fuels Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Petróleo Brasileiro S.A. - Petrobras’s Value Grade

Value Grade:

Petróleo Brasileiro S.A. - Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Petróleo Brasileiro S.A. - Petrobras has a Value Score of 98, which is considered to be undervalued.

Petróleo Brasileiro S.A. - Petrobras’s price-earnings ratio is 13.5 compared to the industry median at 11.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Petróleo Brasileiro S.A. - Petrobras less attractive for value investors.

Petróleo Brasileiro S.A. - Petrobras’s price-to-book ratio is higher than its peers. This could make Petróleo Brasileiro S.A. - Petrobras less attractive for value investors when compared to the industry median at 1.41.

You can read more about Petróleo Brasileiro S.A. - Petrobras’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

SFL Corporation Ltd.’s Value Grade

Value Grade:

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

SFL Corporation Ltd. has a Value Score of 84, which is considered to be undervalued.

SFL Corporation Ltd.’s price-earnings ratio is 11.6 compared to the industry median at 11.3. This means that it has a higher price relative to its earnings compared to its peers. This makes SFL Corporation Ltd. less attractive for value investors.

SFL Corporation Ltd.’s price-to-book ratio is lower than its peers. This could make SFL Corporation Ltd. fairly attractive for value investors when compared to the industry median at 1.41.

You can read more about SFL Corporation Ltd.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Transportadora de Gas del Sur S.A.’s Value Grade

Value Grade:

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Transportadora de Gas del Sur S.A. has a Value Score of 78, which is considered to be undervalued.

Transportadora de Gas del Sur S.A.’s price-earnings ratio is 137.0 compared to the industry median at 11.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Transportadora de Gas del Sur S.A. less attractive for value investors.

Transportadora de Gas del Sur S.A.’s price-to-book ratio is higher than its peers. This could make Transportadora de Gas del Sur S.A. less attractive for value investors when compared to the industry median at 1.41.

You can read more about Transportadora de Gas del Sur S.A.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Oil, Gas & Consumable Fuels Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Oil, Gas & Consumable Fuels stocks as well as other industrys.

Choosing Which of the 7 Best Oil, Gas & Consumable Fuels Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Black Stone Minerals, L.P. stock has a Value Grade of B.
• CNX Resources Corporation stock has a Value Grade of B.
• Murphy Oil Corporation stock has a Value Grade of A.
• OPAL Fuels Inc. stock has a Value Grade of B.
• Petróleo Brasileiro S.A. - Petrobras stock has a Value Grade of A.
• SFL Corporation Ltd. stock has a Value Grade of A.
• Transportadora de Gas del Sur S.A. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Oil, Gas & Consumable Fuels industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Oil, Gas & Consumable Fuels Stocks

Want to learn more about Oil, Gas & Consumable Fuels stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Oil, Gas & Consumable Fuels Stocks for Monday, October 14
• 5 Undervalued Oil, Gas & Consumable Fuels Stocks for Friday, October 11
• 5 Undervalued Oil, Gas & Consumable Fuels Stocks for Thursday, October 10
• 4 Undervalued Oil, Gas & Consumable Fuels Stocks for Wednesday, October 09

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