Undervalued Energy Stock

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Undervalued Energy Stock

Undervalued Energy Stock To Buy In 2026

A quick look at the energy sector shows there are many big names like ExxonMobil and Chevron. However, this sector also has many names that are not that famous, but they do offer great returns.

One undervalued stock in the energy sector is Select Water Solutions (WTTR). Its market cap is $2.3 billion, which makes it a mid-cap stock. Being a mid-cap is one of the key reasons why it is often overlooked.

Select Water Stock Price Is Up By 65%

Despite being overlooked, the Select Water Solutions stock price is still up by 65% YTD. Looking ahead, analysts think more upside is totally possible in the Select Water stock.

So, what exactly does Select Water Solutions do? It is a company based in Texas that provides water treatment, disposal, and transport services to shale drillers.

If we look back, one well in the Permian Basin required 11 million gallons of water every day. This clearly shows the water demand is very high, and Select Water Solutions is there to fill it.

Another thing that makes this company so appealing is that shale wells usually have no convenient water sources. So, the only option is to move the water to these wells. This consistent demand throughout the year is one reason why Select Water Solutions' revenue has increased so much over the years.

Also, there's a high demand for water treatment and disposal at the shale wells. So, that's also an area where Select Water really excels, and it also shows in the company's revenue numbers.

Last but not least, Select Water had $56 million in cash in Q1. That may look small, but it's three times more than what the company had in 2025.

What's more interesting is that Select Water is working on bringing new projects in the next few quarters. With all things considered, the Select Water stock price can easily give a healthy upside in the coming quarters.

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