In this article, we will take a look at the 5 best American oil stocks to buy now. To see more such companies, go directly to 11 Best American Oil Stocks To Buy Now.
5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 64
ConocoPhillips (NYSE:COP) is one of the biggest oil producers in America. ConocoPhillips (NYSE:COP) is also a solid dividend payer, with a dividend yield of over 4% as of January 9. In December, Piper Sandler analyst Ryan Todd raised his price target on ConocoPhillips (NYSE:COP) to $157 from $155 and kept an Overweight rating on the shares. The analyst said in a note to investors that he is bullish on the energy sector even after two years of outperformance. He thinks that the refinery sector is expected to “lead the charge” in 2023.
Of the 920 hedge funds tracked by Insider Monkey as of the end of the third quarter, 64 funds reported having stakes in ConocoPhillips (NYSE:COP).
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 66
Chevron Corporation (NYSE:CVX) is one of the most prominent American oil companies. Recently, Barclays analyst Jeanine Wai upped the stock’s price target to $212 from $196 and kept an Overweight rating on the shares. Over the past 12 months, the stock has gained about 40%. Chevron Corporation (NYSE:CVX) is expected to continue gaining in 2023 as analysts expect higher oil prices in the year.
In October, Chevron Chevron (NYSE:CVX) posted strong Q3 results as the company’s earnings and revenues topped expectations. Chevron Corporation (NYSE:CVX)’s net income in the period came in at $11.23 billion, up from $6.11 billion posted in the same period last year.
3. Chesapeake Energy Corporation (NYSE:CHK)
Number of Hedge Fund Holders: 70
Chesapeake Energy Corporation (NYSE:CHK) is one of the best American stocks to buy. Chesapeake Energy Corporation (NYSE:CHK) is also a natural gas giant and is expected to profit enormously amid the rising global natural gas demand. In October, Jefferies analyst Lloyd Byrne initiated coverage of Chesapeake with a Buy rating and $150 price target.
Chesapeake Energy Corporation (NYSE:CHK) is among the most popular oil stocks among the smart money. Of the 920 hedge funds tracked by Insider Monkey, 70 funds had stakes in Chesapeake Energy Corporation (NYSE:CHK), as of the end of the third quarter.
Carillon Tower Advisers made the following comment about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter:
“Chesapeake Energy Corporation (NASDAQ:CHK), a natural gas exploration and production company, emerged from bankruptcy with little fanfare in 2021, despite having rid itself of its debt burden and onerous pipeline contracts. The company was able to make two large acquisitions at very reasonable prices within its core producing areas, allowing for scale and cost savings. Then in 2022, natural gas prices began to rise well above expectations, increasing the value of Chesapeake’s large natural gas resources and production and contributing to its outperformance.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 74
Occidental Petroleum Corporation (NYSE:OXY) is one of the best American oil stocks to buy. Of the 920 hedge funds tracked by Insider Monkey, 74 hedge funds had stakes in the company, compared to 66 funds in the previous quarter. Occidental Petroleum Corporation (NYSE:OXY) was the top gainer in the S&P 500 index in 2022, gaining about 117% in the year. Recently, Bank of America analyst Doug Leggate upgraded Occidental Petroleum Corporation (NYSE:OXY) to Buy from Neutral. However, the analyst set a price target of $80 on Occidental Petroleum Corporation (NYSE:OXY), down from $82. The analyst said that Occidental is “relatively defensive” compared to peers.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 75
Exxon Mobil Corporation (NYSE:XOM) is an American oil giant and is one of the best oil stocks to buy according to hedge funds and market analysts. Exxon Mobil Corporation (NYSE:XOM)’s stock has gained about 60% over the past 12 months as Exxon Mobil Corporation (NYSE:XOM) benefited from a surge in oil prices. Exxon Mobil Corporation (NYSE:XOM) has been increasing its dividends consistently for the past several years and analysts expected the company to continue on its streak of dividend increases.
A total of 75 hedge funds tracked by Insider Monkey reported having stakes in Exxon Mobil Corporation (NYSE:XOM) as of the end of the third quarter of 2022. Rajiv Jain’s GQG Partners is the biggest stakeholder of Exxon Mobil Corporation (NYSE:XOM) with a $2.9 billion stake.
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