5 Best Fuel Stocks To Buy Now

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 50    

ConocoPhillips (NYSE:COP) recently agreed to purchase the Permian Basin assets of oil giant Shell in a deal worth $9.5 billion. The purchase of the shale oil assets is part of a plan by the fossil fuel firm to diversify away from traditional oil. The firm has solid fundamentals and recently beat market expectations on earnings per share by $0.25 and increased the quarterly dividend by 7% to $0.46 per share. 

On October 7, Truist analyst Neal Dingmann maintained a Buy rating on ConocoPhillips (NYSE:COP) stock and raised the price target to $100 from $84, noting that free cash flows for oil firms looked set to easily top expectations in the coming months. 

At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in ConocoPhillips (NYSE:COP).

In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund 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.”