Texas Pacific Land

TPL

Market cap $36.1B

Texas Pacific Land and Corning are February's top S&P 500 stocks, while EPAM Systems and CoStar Group bring up the rear.

One analyst boosted his price target on the company to $639 per share. He based this on its potential to tap into a monster tech industry trend.

Don't let the headlines fool you. While geopolitical tensions and "AI fatigue" dominate the news cycle, the underlying data tells a different story.

Texas Pacific Land Corporation earns a strong buy rating, driven by resilient royalty revenues and high-margin water services growth. TPL's water services segment, now 21% of revenue, is rapidly expanding and poised to outpace land management as aging wells increase water production. Strategic pivot into AI data centers leverages TPL's land, energy, and water assets, creating closed-loop, high-margin recurring revenue streams.

Texas Pacific Land Pivots Towards Long-Term Data Center Strategy

Texas Pacific Land Corp. remains a high-conviction buy, driven by unique land ownership, oil and gas royalties, and surging water business growth. TPL's data center partnership with Eric Schmidt's Bolt could unlock ultra-high-margin incremental revenue, with a potential 1 GW announcement expected this year. Despite trading at nearly 70x earnings, TPL's debt-free, CapEx-light model and secular growth in oil, water, and data centers support premium valuation.

Texas Pacific Land Corporation (TPL) Q4 2025 Earnings Call Transcript

The S&P 500's annualized total return over the last five years has been roughly 13.5%, but the average stock currently in the index has seen an annualized total return about 2.6 percentage points less at just 10.9%.

DALLAS--(BUSINESS WIRE)--TEXAS PACIFIC LAND CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS.

DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation Invites Shareholders for an Office and Water Field Visit in Midland.