In this article, we will be taking a look at 5 energy stocks to buy before winter. To read our detailed analysis of the energy sector and the prospective future demand for these stocks, you can go directly to see the 10 Energy Stocks to Buy Before Winter.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 57
Devon Energy Corporation (NYSE:DVN) is an independent energy company. It is engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company is based in Oklahoma City. On August 23, Vincent Lovaglio at Mizuho raised his price target on Devon Energy Corporation (NYSE:DVN) shares from $88 to $91. The analyst also reiterated a ‘Buy’ rating on the stock.
Earlier this month, Devon Energy Corporation (NYSE:DVN) raised its 2022 production guidance by 3% in light of year-to-date production performance surpassing expectations. Devon Energy Corporation (NYSE:DVN) also announced a 22% dividend increase for its shareholders, bringing the company’s dividend up to $1.55 per share, compared to the previous value of $1.27. The company’s stock price return shows a 36% gain year-to-date and a 150% increase over the past year.
As of the close of the second quarter, 57 hedge funds were long Devon Energy Corporation (NYSE:DVN), with a total stake value of $1.5 billion.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 59
Chevron Corporation (NYSE:CVX) is an energy company that engages in integrated energy and chemicals operations worldwide, through its subsidiaries. It operates through its Upstream and Downstream segments, and is based in San Ramon, California.
Phillip Jungwirth, an analyst at BMO Capital, reiterated an ‘Outperform’ rating on Chevron Corporation (NYSE:CVX) shares on August 23. The analyst also holds a $180 price target on the stock.
Chevron Corporation (NYSE:CVX) had EPS of $5.82 in the second quarter, beating estimates by $0.70. The company’s revenue was $68.8 billion, also beating estimates by $11.1 billion. Over the next three to five years, Chevron Corporation’s (NYSE:CVX) EPS is expected to rise by 13.1%.
There were 59 hedge funds long Chevron Corporation (NYSE:CVX) in the second quarter, compared to 53 hedge funds in the previous quarter. Their total stake values were $26 billion and $27.9 billion respectively.
3. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY) is an integrated oil and gas company that acquires, explores, and develops oil and gas properties. The company operates in the U.S., the Middle East, Africa, and Latin America. An ‘Overweight’ rating was reiterated on Occidental Petroleum Corporation (NYSE:OXY) shares on July 26 by Barclays analyst Jeanine Wai. The analyst also holds a $79 price target on the stock.
Occidental Petroleum Corporation (NYSE:OXY) has been benefiting due to billionaire Warren Buffett’s prolonged interest in the company. Recently, Buffett’s request to accumulate a 50% stake in the company was approved by the Federal Energy Regulatory Commission, leading the stock to rise by almost 10%. As of this August, Berkshire Hathaway holds a 20.2% stake in the company.
Out of 895 hedge funds tracked by Insider Monkey’s database, 66 were long Occidental Petroleum Corporation (NYSE:OXY) in the second quarter. Their total stake value was $13.8 billion.
Smead Capital Management, an investment management company, mentioned Occidental Petroleum Corporation (NYSE:OXY) in its second quarter 2022 investor letter. Here’s what it said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 71
ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, and more across the globe. The company is based in Houston, Texas.
A ‘Buy’ rating was reiterated on ConocoPhillips (NYSE:COP) shares on August 23 by analyst Vincent Lovaglio at Mizuho. The analyst also holds a $138 price target on the stock.
In August, ConocoPhillips (NYSE:COP) added $5 billion to its planned shareholder returns for 2022, bringing the total value up to $15 billion. The move came in light of rising energy prices. The company’s net income in the second quarter also rose to $5.1 billion, much higher than the $2.1 billion figure brought in during the year-earlier quarter.
ConocoPhillips (NYSE:COP) had the investment backing of 71 hedge funds in the second quarter, compared to 67 hedge funds in the previous quarter. Their total stake values were $2.4 billion and $2.6 billion respectively.
Diamond Hill Capital, an investment management firm, mentioned ConocoPhillips (NYSE:COP) in its first quarter 2022 investor letter. Here’s what the firm said:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is an energy company that explores for and produces crude oil and natural gas in the U.S. and internationally. The company operates through its Upstream, Downstream, and Chemical segments.
William Janela, an analyst at Credit Suisse, assumed coverage of Exxon Mobil Corporation (NYSE:XOM) shares on August 10 with an ‘Outperform’ rating. The analyst holds a price target of $125 on the stock.
Exxon Mobil Corporation (NYSE:XOM) delivered EPS of $4.14 in the second quarter, and revenue of $116 billion. Both beat estimates, by $0.40 and $3.6 billion respectively. The company’s EPS is expected to grow by 1.3% over the next three to five years, and it currently has a one-year dividend growth rate of 0.9%.
In the second quarter of 2022, 72 hedge funds were long Exxon Mobil Corporation (NYSE:XOM)., with a total stake value of $7.4 billion.
See also 10 Good Paying Jobs For 18 Year Olds and the 10 Best Cryptocurrency Exchanges in 2020.
