5 Best Energy Stocks to Buy Now

4. Marathon Oil Corporation (NYSE:MRO)

Number of Hedge Fund Holders: 41

Marathon Oil Corporation (NYSE:MRO) is an oil exploration and production company that explores and sells crude oil, natural gas, and derivates such as methanol and LNG. The firm is headquartered in Houston, Texas, United States of America.

Marathon Oil Corporation (NYSE:MRO) is relatively safe when compared to some of the other firms out there when we take a look at its FCO Cockpit Global Bubble Status Report score of 17.1% which implies that the stock is not in a bubble that might pop and bring down investors with it. Additionally, the FCO’s return on invested capital (ROIC) to enterprise value score for Marathon Oil Corporation (NYSE:MRO) is 78%, hinting that perhaps the stock is undervalued. The company’s second quarter results saw it post an FCF yield of 25%, which was the second highest in the S&P 500. Marathon Oil Corporation (NYSE:MRO) also pays an 8 cent dividend for a 1.22% yield.

Piper Sandler raised Marathon Oil Corporation (NYSE:MRO)’s share price target to $41 from $38 in July 2022, indicating that the energy sector has responded well to recessionary fears. 41 out of the 895 hedge funds polled by Insider Monkey for their June quarter of 2022 holdings had held a stake in the company.

Ken Fisher’s Fisher Asset Management‘s is Marathon Oil Corporation (NYSE:MRO)’s largest investor. It owns 8.6 million shares that are worth $194 million.

Carillon Tower Advisers mentioned the company in its Q1 2022 investor letter. Here is what the fund said:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”