3 Undervalued Energy Stocks Turning Into Hot Buys

KNOT Offshore Partners LP (KNOP), Riley Exploration Permian Inc. (REPX), and YPF SA (YPF) have emerged as top value picks within the oil & gas sector, significantly improving their Benzinga Edge value percentile rankings this week. These stocks, now positioned in the top decile of value, signal enhanced fundamental attractiveness relative to their market prices, despite varied year-to-date price performance across the group.

Analysis

Three dynamic energy stocks have asserted themselves as top picks for value investors this week, each breaking into the top decile of value rankings among their peers. Understanding The Value Ranking Benzinga Edge Stock Rankings‘ value metric is a composite, percentile-based metric that evaluates a stock's relative worth by comparing its market price to various fundamental measures such as earnings, assets, sales, and operating performance. This percentile ranking allows investors to assess, at a glance, which stocks are priced attractively compared to their sector and industry peers at any given time Top 3 Undervalued Oil & Gas Stocks KNOT Offshore Partners LP (NYSE:KNOP), Riley Exploration Permian Inc. (NYSE:REPX), and YPF SA (NYSE:YPF), operating in the oil & gas sector, not only benefit from industry tailwinds but also stand out in terms of valuation metrics, as indicated by a marked improvement in their value percentile scores over the last week. KNOT Offshore Partners - The value percentile for KNOP jumped from 87.69 to 90.45—a week-on-week increase of 2.76 points. - The stock has jumped by 48.39% year-to-date and 33.44% over a year. - It maintains a stronger price trend over the short, medium, and long term, with a moderate growth ranking. Additional performance details are available here. See Also: 4 Hot Chip Stocks You Can’t Ignore Riley Exploration Permian - REPX saw its value ranking strengthen from 89.99 to 91.26, recording a 1.27-point increase over the previous week. - The stock was lower by 18.66% YTD and 5.27% in a year. - This stock maintained a weaker price trend over the short, medium, and long terms with a robust growth ranking. Additional performance details are available here. YPF SA - YPF advanced from a percentile score of 89.80 to 91.82, marking a robust gain of 2.02 points - Lower by 45.85% YTD, the stock was up 9.87% over the year. - It had a weaker price trend in the short, medium, and long terms, with a moderate growth ranking. Additional performance details are available here. Price Action The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and the Nasdaq 100 index, respectively, rose in premarket on Monday. The SPY was up 0.31% at $671.26, while the QQQ advanced 0.65% to $607.11, according to Benzinga Pro data. Read Next: Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Three energy stocks—KNOT Offshore Partners LP (KNOP), Riley Exploration Permian Inc. (REPX), and YPF SA (YPF)—have been identified as top-tier value opportunities, each moving into the top decile of a percentile-based value ranking system that compares market price against fundamental metrics. This improved valuation signal comes amid a positive premarket backdrop for broader indices like the SPY and QQQ. The cases present a notable divergence in performance profiles. KNOP's value percentile rose to 90.45 despite a significant 48.39% year-to-date stock price increase, indicating its fundamental value is improving even as its price rallies. In contrast, REPX and YPF now appear undervalued following substantial price declines. REPX, whose value score increased to 91.26, has seen its stock fall 18.66% year-to-date, yet it maintains a 'robust growth ranking' despite a weak price trend. Similarly, YPF's value score advanced to 91.82 after a steep 45.85% year-to-date drop, and it is classified with a 'moderate growth ranking' and a weak price trend. This data suggests that while the sector may have industry tailwinds, these specific stocks represent distinct investment theses: KNOP as a value-with-momentum play, and REPX and YPF as potential deep value or turnaround opportunities.

Key Decisions for Investors

• Investors should differentiate their due diligence, as KNOP presents a value-with-momentum case while REPX and YPF are potential turnaround plays where the weak price trend must be weighed against the strong value signal.
• For KNOT Offshore Partners (KNOP), its 48.39% year-to-date gain paired with a rising value score suggests strong fundamental performance, requiring investors to verify the sustainability of this momentum before initiating or adding to positions.
• Given the significant price declines of 18.66% for Riley Exploration (REPX) and 45.85% for YPF (YPF) year-to-date, it is critical to investigate the underlying causes of the weak price trends and identify potential catalysts for reversal, as the disconnect with their favorable value and growth rankings highlights a material value trap risk.