10 Best Oil Stocks to Buy Now Amid the US-Iran Conflict

7. Diamondback Energy Inc. (NASDAQ:FANG)

Stock Upside Potential: 14.22%

Year to Date Gain: 31.75%

Number of Hedge Fund Holders: 52

Diamondback Energy Inc. (NASDAQ:FANG) is one of the best oil stocks to buy now amid the US-Iran Conflict. On May 20, analysts at Citi reiterated their Buy rating on Diamondback Energy Inc. (NASDAQ:FANG) and raised their price target to $245 from $225.

The upgrade comes after Diamondback Energy rallied by more than 30% year to date. According to the research firm, there is still a disconnect between oil-levered companies and medium-term crude prices. This disconnect presents a significant opportunity.

Earlier in the month, Diamondback Energy bought options to sell the price difference between U.S. West Texas Intermediate crude and globally traded Brent crude at around ​minus $42 a barrel. By purchasing options worth about $70 million, the company is essentially limiting the risk of falling oil prices and securing future revenues.

In the first quarter, Diamondback Energy generated $4.2 billion in revenue and a net gain of $117 million related to its derivatives positions.

Diamondback Energy Inc. (NASDAQ:FANG) is an independent American oil and natural gas company. It focuses on the exploration, acquisition, development, and production of unconventional onshore oil and gas reserves, operating exclusively in the Permian Basin in West Texas.

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