5 Best Fuel Stocks To Buy Now

4. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 50     

Devon Energy Corporation (NYSE:DVN) operates as an independent energy company and is based in Oklahoma. It recently posted earnings for the third quarter, reporting earnings per share of $1.08, beating predictions by $0.15. The revenue over the period was $3.4 billion, up 224% year-on-year and beating estimates by $1 billion. The company also increased the fixed-plus-variable dividend payout by 71% to $0.84 per share. 

Mizuho analyst Vincent Lovaglio recently raised the price target on Devon Energy Corporation (NYSE:DVN) stock to $59 from $38 and reiterated a Buy rating, underlining that there was increased confidence in oil exploration stocks at the market. 

Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 7.5 million shares worth more than $219 million. 

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund 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.”