5 Best Stocks of 2021

In this article, we discuss the 5 best stocks of 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks of 2021.

5. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 50    

Year-To-Date Gain: 179% 

One of the best-performing industries this year has been the energy sector, specially the oil and gas segment. Devon Energy Corporation (NYSE:DVN), an integrated oil and gas firm, has benefited from the increase in demand for oil in the post-pandemic economy, as well as the soaring oil prices as OPEC discusses production increases. Truist analyst Neal Dingmann has a Buy rating on the stock with a price target of $60. 

Devon Energy Corporation (NYSE:DVN) stock has climbed further in the past few days after OPEC announced that it would be sticking to a plan to only increase oil output by 400,000 barrels per day, much below high demand, through December. This effectively means that oil prices will remain high in the near-future. 

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.”