14 Best Oil and Gas Stocks to Buy According to Hedge Funds

10. Valero Energy Corporation (NYSE:VLO

Number of Hedge Fund Holders: 67

Next on our list of the Best Oil and Gas Stocks is Valero Energy Corporation (NYSE:VLO). It is the world’s premier independent petroleum refiner and a leading producer of low-carbon transportation fuels.

On May 27, Mizuho significantly bumped up its price target on Valero Energy Corporation (NYSE:VLO) from $222 to $289, but kept a ‘Neutral’ rating on the shares. The revised target reflects an upside of 18% from the current levels.

Mizuho expects the Iran war to have a lasting impact on global oil prices and refining cracks. As a result, the firm raised its oil price outlook for 2026 and 2027 by 25% and 6%, respectively.

According to Mizuho, a pullback in energy stock valuations, despite the strong commodity prices, presents an opportunity for investors to seek “alpha” within the US oil sector. The analyst firm revised its ratings and price targets across the group.

Valero Energy Corporation (NYSE:VLO) comfortably exceeded expectations in its Q1 2026 report last month, driven by the strength in its refining segment, margins, and throughput ‌volumes. As a result, VLO was included in our list of the 10 Energy Stocks That Crushed Earnings Estimates in the First Quarter.

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