Hess Corporation (HES): A Bull Case Theory

We came across a bullish thesis on Hess Corporation (HES) on Hidden Market Gems’ Substack. In this article, we will summarize the bulls’ thesis on HES. Hess Corporation (HES)'s share was trading at $140.58 as of 11^th June. HES’s trailing and forward P/E were 18.95 and 24.21 respectively according to Yahoo Finance.

Hess Corporation stands out as a resilient veteran in the energy sector, maintaining its growth trajectory despite market volatility and cyclical pressures. Often likened to an old sea wolf, Hess embodies the grit and strategic discipline required to navigate the complexities of global energy markets.

The company continues to reaffirm its long-term production and investment outlook, signaling confidence in the durability of its asset base and capital allocation strategy. Currently trading below intrinsic value, Hess presents an attractive opportunity for investors seeking exposure to an eventual energy rebound. Its operational footprint, particularly in high-return regions like the Guyana basin, positions it well for sustained production growth and cash flow generation.

Moreover, while traditional hydrocarbons remain its core business, Hess is not ignoring the broader energy transition. The company is gradually integrating renewables and lower-carbon initiatives into its long-term planning, which could catalyze future revaluation as ESG considerations gain more weight among institutional investors.

The dual appeal of near-term cash flow strength and long-term optionality in green technologies enhances its risk/reward profile. For investors willing to endure sector volatility, Hess offers a compelling mix of undervaluation, operational momentum, and potential strategic upside in a world that still depends heavily on reliable energy infrastructure.

We previously highlighted a bullish thesis on Occidental Petroleum (OXY) by Magnus Ofstad, emphasizing undervaluation, Permian Basin strength, and carbon capture potential. The stock price has appreciated by roughly 4% since our recent coverage. Hidden Market Gems’ thesis on Hess Corporation (HES) echoes this optimism, focusing on Guyana-led growth and ESG upside. Both offer energy rebound exposure, with Hess reflecting steadier execution and OXY offering deeper value.

Hess Corporation (HES) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held HES at the end of the first quarter which was 92 in the previous quarter. While we acknowledge the risk and potential of HES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.