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

7. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 74

Next on our list of the Best Oil and Gas Stocks is ConocoPhillips (NYSE:COP). It is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.

On May 27, Mizuho bumped up its price target on ConocoPhillips (NYSE:COP) from $136 to $150, while maintaining an ‘Outperform’ rating on the shares. The revised target represents an upside of almost 32% from the current price level.

Mizuho expects the US-Iran war to have a lasting impact on the global oil prices and refining margins. As a result, the company raised its oil price forecast for this year and the next by 25% and 6%, respectively. Similarly, the firm also significantly increased its outlook for US refining cracks by 61% and 51%.

Mizuho believes that a drop in energy stock valuations, despite the high commodity prices, would give investors a chance to seek “alpha” within the US oil and gas sector. The analyst firm revised its ratings and price targets across the group.

Similarly, earlier on May 22, Morgan Stanley also boosted its price target on ConocoPhillips (NYSE:COP) by $4, while keeping its ‘Overweight’ rating (read more details here).