In this article, we discuss the 5 best fuel stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Fuel Stocks To Buy Now.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 49
On October 25, investment advisory Morgan Stanley maintained an Overweight rating on Cheniere Energy, Inc. (NYSE:LNG) stock and raised the price target to $132 from $94, underlining that the firm had posted market-beating earnings for three quarters in a row and the stock has risen by more than 110% year-to-date. The firm operates as an energy infrastructure company with core interests in the LNG business.
Cheniere Energy, Inc. (NYSE:LNG) recently signed a deal with Glencore under which the latter agreed to purchase LNG worth $800,000 metric tonnes per year for thirteen years beginning in 2023. The share price of the company jumped 2% after the deal was made public.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Cheniere Energy, Inc. (NYSE:LNG), up from 40 in the previous quarter worth $2.5 billion.
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.”
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.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 50
Chevron Corporation (NYSE:CVX) is one of the biggest oil companies in the world. It has benefited greatly from the recent increase in oil prices that jumped above $85 per barrel in late October, topping seven-year highs of $80 touched earlier in the month. The earnings results of the firm for the third quarter reflected further potential as well, as it beat market expectations on earnings per share and revenue by $0.77 and $3.8 billion respectively.
Chevron Corporation (NYSE:CVX) is also recognized as a trusted name in the dividend stock world. It recently declared a quarterly dividend of $1.34 per share, in line with previous. The forward yield was 4.78%.
At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Chevron Corporation (NYSE:CVX), up from 41 in the preceding quarter worth $4.8 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) 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) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 68
Morgan Stanley analyst Devin McDermott recently kept an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) stock with a price target of $149, noting that oil giants like Exxon looked set for “catch up” trade in the coming months amid oil price hikes. The firm recently beat market predictions on earnings per share and revenue and has also been exploring the deployment of low carbon technologies in Indonesia as part of an energy transition plan.
Reports from November 2 indicate that Exxon Mobil Corporation (NYSE: XOM) has agreed to sell its stake in a deepwater natural gas project in the Black Sea to a Romanian firm in a deal worth more than $1 billion.
At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Exxon Mobil Corporation (NYSE:XOM), up from 65 in the preceding quarter worth $2.7 billion.
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
