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Stocks•30 June 2026•

1 min read

SM Energy Rated Strong Buy: 70% Sector Discount and Asset Growth

Key Facts

1SM Energy is rated Strong Buy, trading at a 70% discount to the sector average despite robust asset growth.

2SM Energy expanded its asset base to 800,000 net acres after acquiring Civitas and Uinta Basin, boosting oil and NGL output.

As energy sector stocks face mixed pressures, SM Energy emerges as a potential opportunity, according to a new analysis from Seeking Alpha. Analysts assigned a Strong Buy rating, noting that the stock trades at a 70% discount to the sector average despite robust asset growth. The bullish call is underpinned by the company's recent expansion through acquisitions from Civitas Resources and in the Uinta Basin, which brought its total net acreage to 800,000 acres and boosted oil and NGL production.

Analysts view the derivative losses linked to the Civitas acquisition as temporary, expecting them to reverse by 2027 and unlock hidden value. Market comparisons show SM Energy shares remain depressed relative to mid-cap energy peers, even as macro tailwinds such as declining U.S. crude inventories (API crude stocks fell week-on-week) support oil prices and sector performance.

As of the last close on June 29, 2026, SM Energy shares traded below historical levels, offering a potential entry point for investors. Near-term catalysts include weekly EIA crude inventory data and second-quarter earnings reports from comparable firms, which could drive a re-rating. Investors should watch global oil price trends and any updates on how quickly SM Energy capitalizes on its recent acquisitions.