In this article, we discuss 5 best high beta stocks to buy now. If you want to see more stocks in this selection, check out 11 Best High Beta Stocks To Buy Now.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 57
Beta Value: 2.45
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation (NYSE:DVN) is one of the best high beta stocks to buy now. On October 18, Piper Sandler analyst Mark Lear lifted the price target on Devon Energy Corporation (NYSE:DVN) to $96 from $94 and assigned an Overweight rating to the shares. After a rocky September, exploration and production names are “back on solid footing heading” into the Q3 results given the limited OPEC supply, as per the analyst.
According to Insider Monkey’s data, 57 hedge funds were long Devon Energy Corporation (NYSE:DVN) at the end of June 2022, compared to 66 funds in the last quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with nearly 15 million shares worth $822 million.
GoodHaven Capital Management released its second-quarter 2022 investor letter and mentioned Devon Energy Corporation (NYSE:DVN). Here is what it said:
“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”
