5 Best Value Stocks to Buy According to Billionaire Dan Loeb

02. Ovintiv Inc. (NYSE:OVV)

Third Point’s Stake Value: $270.443 Million

Percentage of Third Point’s 13F Portfolio: 6.4%

Number of Hedge Fund Holders: 47

P/E Ratio (Non-GAAP) as of October 09: 7.58 

Ovintiv Inc. (NYSE:OVV) was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. (NYSE:OVV) was incorporated in 2020 and is based in Denver, Colorado. Ovintiv Inc. (NYSE:OVV), together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids.

On September 26, Barclays analyst Jeanine Wai raised his price target for Ovintiv Inc. (NYSE:OVV) to $78 from $75 and maintained an Overweight rating on the stock. Wai writes in a research note to investors that the company’s “top-tier” free cash flow and payout yield are “too good to ignore.” He further claims that there is “enough FCF to go around to both reward equity shareholders and continue to meaningfully reduce net debt”.

Here is what Carillon Tower Advisers specifically said about Ovintiv Inc. (NYSE:OVV) in its Q2 2022 investor letter:

“Oil and gas exploration and production company Ovintiv Inc. (NYSE:OVV) fell as oil prices faded late in the quarter due to aggressive Fed rate hikes and growing credit fears in emerging markets, a source of demand growth for oil. Although oil and fuel product inventories remain scarce, the Fed has been so aggressive with rhetoric and tightening that the dollar rose sharply and investor sentiment shifted toward anticipating a recession. Ovintiv is a self-help improvement story as it lowers debt levels through cash generation and asset sales, while detailing plans to buy back shares more aggressively and pay a higher dividend.”