5 Best Energy Stocks for Inflation

1. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 67

ConocoPhillips (NYSE:COP) was founded in 1917 and is headquartered in Houston, Texas. The company produces, transports, and distributes crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. ConocoPhillips (NYSE:COP) is focused on raising its exposure to the global LNG market. The company is also generating exponential FCF and has a dividend yield exceeding 3%, with a price to earnings ratio of just 9.47. 

MKM Partners analyst Leo Mariani initiated coverage of ConocoPhillips (NYSE:COP) on July 20 with a Buy rating and a $110 price target as part of a broader research note on Exploration & Production names. Despite the recent volatility in the oil market, WTI oil prices should remain over $100 as long as the Ukraine war continues, the analyst told investors. The analyst is also optimistic about ConocoPhillips (NYSE:COP)’s “high returns of capital to shareholders, lower base production declines compared to peers, valuable international asset diversification and strong balance sheet”. 

According to Insider Monkey’s data, 67 hedge funds were bullish on ConocoPhillips (NYSE:COP) at the end of Q1 2022, up from 56 funds in the earlier quarter. Ric Dillon’s Diamond Hill Capital is the leading shareholder of the company, with more than 7 million shares worth $702.5 million. 

Here is what ClearBridge Investments Large Cap Value Strategy has to say about ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

You can also take a look at This Analyst Is Bearish on These 15 Retail Stocks Amid “Soft Landing” Expectations and 10 Best Stocks For Inflation According to Redditors. 

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