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.”
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 50
ConocoPhillips (NYSE:COP) is a Texas-based firm that explores for and produces natural gas and oil. It is placed fourth on our list of 10 best oil stocks to buy according to hedge funds.
On September 24, investment advisory Raymond James maintained a Strong Buy rating on ConocoPhillips (NYSE:COP) stock and raised the price target to $90 from $80. John Freeman, an analyst at the advisory, issued the ratings update.
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), down from 51 in the previous quarter worth $1.2 billion.
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.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 50
Chevron Corporation (NYSE:CVX) is a California-based integrated energy company. It is ranked third on our list of 10 best oil stocks to buy according to hedge funds.
On September 15, investment advisory Citi maintained a Neutral rating on Chevron Corporation (NYSE:CVX) stock with a price target of $105, noting that an energy transition strategy update from the firm was “very much expected”.
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.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 57
Occidental Petroleum Corporation (NYSE:OXY) is placed second on our list of 10 best oil stocks to buy according to hedge funds. The firm acquires, explores, and develops natural gas and oil properties. It is headquartered in Texas.
On September 29, investment advisory Evercore ISI upgraded Occidental Petroleum Corporation (NYSE:OXY) stock to Outperform from In Line and raised the price target to $40 from $35, noting the stock was an opportunity to play the next upcycle in energy.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Occidental Petroleum Corporation (NYSE:OXY), up from 52 the preceding quarter worth $3.4 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 68
Exxon Mobil Corporation (NYSE:XOM) is ranked first on our list of 10 best oil stocks to buy according to hedge funds. The firm operates as an integrated oil and gas company and is headquartered in Texas.
On July 23, investment advisory Piper Sandler reiterated a Neutral rating on Exxon Mobil Corporation (NYSE: XOM) stock and raised the price target to $69 from $63, noting that crude oil “tightness” was adding momentum to the free cash flow outlooks for the integrated oil firms.
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 Best Stocks Under $15 According to Billionaire Michael Price and Jacob Rothschild’s RIT Capital Partners is Selling These 10 Stocks.
