5 Best Oil Stocks To Buy According To Hedge Funds

In this article, we discuss the 5 best oil stocks to buy according to hedge funds. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Oil Stocks To Buy According To Hedge Funds.

5. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 50     

Devon Energy Corporation (NYSE:DVN) is ranked fifth on our list of 10 best oil stocks to buy according to hedge funds. The firm operates as an independent energy company. It is run from Oklahoma. 

On July 22, investment advisory Piper Sandler reiterated an Overweight rating on Devon Energy Corporation (NYSE:DVN) stock and raised the price target to $37 from $34. Mark Lear, an analyst at the advisory, issued the ratings update. 

Out of 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.”