In this article, we will be looking at the 5 best energy stocks to buy now. To see our detailed analysis of the energy industry, you can go directly to the 15 Best Energy Stocks to Buy Now.
5. Enphase Energy, Inc. (NASDAQ: ENPH)
Number of Hedge Fund Holders: 49
Enphase Energy, Inc. (NASDAQ: ENPH) is a renewable energy company operating in the business of home energy solutions for the solar photovoltaic industry. The company ranks 5th on our list of the best energy stocks to buy now.
This July, Goldman Sachs raised its price target on Enphase Energy, Inc. (NASDAQ: ENPH) from $187 to $202, while keeping its Buy rating on the shares. The month before, Enphase Energy, Inc. (NASDAQ: ENPH) also launched its Encharge battery storage system in Germany, marking the company’s first step into an international market.
In the first quarter of 2021, the EPS of Enphase Energy, Inc. (NASDAQ: ENPH) came in at $0.56, beating estimates by $0.12, and its revenue came in at $301.75 million, representing an increase of 46.81% year over year and beating estimates by $9.32 million. Enphase Energy, Inc. (NASDAQ: ENPH) has a gross profit margin of 44.59% and has gained 222.08% in the past year.
By the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Enphase Energy, Inc. (NASDAQ: ENPH). The total value of their stakes was roughly $803 million. This is compared to the previous quarter’s 48 hedge fund holders with a total stake value of approximately $988 million.
4. ConocoPhillips (NYSE: COP)
Number of Hedge Fund Holders: 51
ConocoPhillips (NYSE: COP) is an energy company working in the exploration, production, transport, and marketing of crude oil, bitumen, natural gas, LNG, and natural gas liquids across the world. The stock ranks 4th on our list of the best energy stocks to buy now.
This July, ConocoPhillips’s (NYSE: COP) price target was raised from $63 to $77 at Truist, with the firm retaining its Buy rating on the stock. BMO Capital has also raised its price target on the shares to $76, with their Outperform rating. Analyst Phillip Jungwirth has commented that the company’s market presentation was “positive” and he has increased his financial year 2021 EPS view for ConocoPhillips (NYSE: COP) to $4.32, while the financial year 2022 view has been raised to $5.95.
In the first quarter of 2021, ConocoPhillips (NYSE: COP) had an EPS of $0.69, beating estimates by $0.15. The company’s revenue was $10.56 billion, up 119.48% year over year and beating estimates by $2.29 billion, and it has a gross profit margin of 36.53%. The stock has gained 30.53% in the past 6 months and 49.63% year to date.
As of the end of the first quarter of 2021, 51 hedge funds held stakes in ConocoPhillips (NYSE: COP) worth roughly $1.20 billion. This is compared to 49 hedge funds in the previous quarter with a total stake value of approximately $687 million.
ClearBridge Investments, an investment management firm, mentioned ConocoPhillips (NYSE: COP) in its first-quarter 2021 investor letter. Here’s what they said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Devon Energy Corporation (NYSE: DVN)
Number of Hedge Fund Holders: 52
Devon Energy Corporation (NYSE: DVN) is an independent energy company, operating in the exploration, development, and production of oil, natural gas, and natural gas liquids in the US. It ranks 3rd on our list of the best energy stocks to buy now.
This July, Truist raised its price target on Devon Energy Corporation (NYSE: DVN) from $35 to $42 with a Buy rating on the shares, while the month before that, Bernstein upgraded the stock to Outperform. Devon Energy Corporation (NYSE: DVN) has also revealed that it is planning to achieve its goal of net-zero greenhouse gas emissions by 2050.
In the first quarter of 2021, Devon Energy Corporation (NYSE: DVN) had an EPS of $0.45, beating estimates by $0.13. The company’s revenue was $1.76 billion, crossing the previous quarter’s $1.28 billion revenue, and it has a gross profit margin of 44.19%. The stock has gained 51.45% in the past 6 months and 72.10% year to date as well.
As of the end of the first quarter of 2021, 52 hedge funds held stakes in Devon Energy Corporation (NYSE: DVN) worth roughly $1.46 billion. This is compared to 45 hedge funds in the previous quarter with a total stake value of approximately $709 million.
GoodHaven Capital Management, a concentrated portfolio investment management firm, mentioned Devon Energy Corporation (NYSE: DVN) in its fourth-quarter 2020 investor letter. Here’s what they said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
2. NextEra Energy, Inc. (NYSE: NEE)
Number of Hedge Fund Holders: 63
NextEra Energy, Inc. (NYSE: NEE) distributes electric power to retail and wholesale customers in North America, using wind, solar, nuclear, and other energy sources to generate its electricity. The company ranks 2nd on our list of the best energy stocks to buy now.
President Biden’s infrastructure plan has resulted in certain clean energy stocks standing to benefit from extensions of investment and production tax credit meant to uplift commercial solar and wind, and NextEra Energy, Inc. (NYSE: NEE) is one of those stocks. Barclays has an Equal Weight rating on the shares as of this May and the company has offered guidance indicating an adjusted EPS growth of 6-8% for 2022 and 2023.
In the first quarter of 2021, NextEra Energy, Inc. (NYSE: NEE) had an EPS of $0.67, beating estimates by $0.06, while its revenue came in at $3.73 billion. The company has a gross profit margin of 55.97% and the stock has gained 19.25% in the past year.
By the end of the first quarter of 2021, 63 hedge funds out of the 866 tracked by Insider Monkey held stakes in NextEra Energy, Inc. (NYSE: NEE). The total value of their stakes was roughly $2.72 billion. This is compared to the previous quarter’s 61 hedge fund holders with a total stake value of approximately $3.07 billion.
1. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) is an energy company exploring and producing crude oil and natural gas in the US and internationally. The company ranks 1st on our list of the best energy stocks to buy now.
This June, Wells Fargo and Citigroup both raised their price targets on Exxon Mobil Corporation (NYSE: XOM) to $72 and $62, respectively. Wells Fargo has an Overweight rating on the shares, with analyst Roger Read commenting that Exxon Mobil Corporation’s (NYSE: XOM) net debt could be reduced to $35 billion by the end of 2023 in a positive development.
In the first quarter of 2021, Exxon Mobil Corporation (NYSE: XOM) had an EPS of $0.65, beating estimates by $0.05. The company’s revenue was $59.15 billion, up 5.32% year over year and beating estimates by $2.89 billion, and it has a gross profit margin of 32.49%. The stock has gained 28.39% in the past 6 months and 44.92% year to date.
As of the end of the first quarter of 2021, 65 hedge funds held stakes in Exxon Mobil Corporation (NYSE: XOM) worth roughly $2.77 billion. This is compared to 63 hedge funds in the previous quarter with a total stake value of approximately $2.20 billion.
You can also take a peek at 10 Best Renewable Energy Stocks to Buy Now and 10 Best Alternative Fuel Stocks to Buy Now.
