5 Best Energy Stocks To Invest In According to Analysts

3. EOG Resources, Inc. (NYSE:EOG)

Average Analyst Price Target as of April 11: $149.53

Average Upside Potential as of April 11: 22.67%

Number of Hedge Fund Holders: 50

EOG Resources, Inc. (NYSE:EOG) is one of the best energy stocks to buy now. The stock has received 15 Buy ratings from analysts over the past 3 months and has an average price target of $149.53, as of April 11. The stock’s average price target implies an upside of 22.67% from current levels.

This March, Morgan Stanley updated its price target on EOG Resources, Inc. (NYSE:EOG) to $132 from $140 and reiterated an Overweight rating on the shares.

EOG Resources, Inc. (NYSE:EOG) was held by 50 hedge funds at the end of the fourth quarter of 2022. These funds held collective positions worth $1.19 billion in the company. As of December 31, Harris Associates is the top investor in the company and has a position worth $792 million.

Artisan Partners made the following comment about EOG Resources, Inc. (NYSE:EOG) in its Q4 2022 investor letter:

“Our top three contributors for the full year were two energy holdings—Schlumberger and EOG Resources, Inc. (NYSE:EOG)—and health care company Merck. EOG is a US shale-focused E&P company. The current supportive commodity price environment and EOG’s continuing to deliver on its production goals and capex plans have led investors to bid up shares. Its commitment to return excess capital to shareholders via regular and special dividends is also highly appealing, particularly in a period of rising interest rates. The company has proven its ability to create economic value for shareholders, even over the past decade that included the toughest energy commodity environment of the last 30+ years. The company’s strong balance sheet enabled it to increase production capabilities during the downturn. EOG has a low-cost production position with a strong reserve base, giving it an advantage versus peers. Further, EOG’s management focuses on return on invested capital and cash flow generation, distinguishing it from most of the company’s competitors who prioritize growth over profitability.”