In this piece, we will take a look at the five energy stocks to buy today according to Richard S. Pzena’s Pzena Investment Management. If you want to learn more about the investment firm and its founder, then take a look at 10 Energy Stocks to Buy Today According to Richard S. Pzena’s Hedge Fund.
5. NOV Inc. (NYSE:NOV)
Pzena Investment Management’s Stake Value: $551 million
Percentage of Pzena Investment Management’s 13F Portfolio: 2.07%
Number of Hedge Fund Holders: 28
NOV Inc. (NYSE:NOV) designs, builds and sells equipment that is used in the production and exploration of oil and gas. This equipment allows companies to drill, construct wells, and set up oil rigs. The company is headquartered in Houston, Texas, and it is one of the oldest firms in the world after being founded in 1862.
Mr. Pzena’s investment firm owned 40 million NOV Inc. (NYSE:NOV) shares by the end of Q4 2021. These were worth $551 million and represented 2.07% of its investment portfolio. Insider Monkey’s survey of 924 hedge funds for the same time period revealed that 28 had owned the company’s shares.
NOV Inc. (NYSE:NOV) earned $1.52 billion in revenue and -$0.10 GAAP EPS for its fiscal fourth quarter, beating analyst estimates for revenue and missing them for EPS. Citi raised the company’s price target to $22 from $21 in March 2022, stating that while near term risks were present to the company, its long term future is positive.
NOV Inc. (NYSE:NOV)’s largest investor after Pzena Investment Management is Jean-Marie Eveillard’s First Eagle Investment Management which owns 34 million shares worth $461 million.
4. NRG Energy, Inc. (NYSE:NRG)
Pzena Investment Management’s Stake Value: $742 million
Percentage of Pzena Investment Management’s 13F Portfolio: 2.79%
Number of Hedge Fund Holders: 28
NRG Energy, Inc. (NYSE:NRG) is an American electricity supplier that is headquartered in Houston, Texas and generates electricity through a variety of sources. These sources include natural gas, coal. oil, solar, and nuclear plants.
NRG Energy, Inc. (NYSE:NRG) raked in $26.6 billion in revenue and $8.93 in GAAP EPS for its fiscal year 2021, missing analyst estimates for EPS. UBS reduced the company’s price target to $42 from $44 in January 2022, outlining that the company will only grow slowly and in the long term.
Pzena Investment Management owned 17 million NRG Energy, Inc. (NYSE:NRG) shares as the fourth quarter of last year came to an end. These were worth $742 million and represented 2.79% of its portfolio. A Q4 2021 survey of 924 hedge funds conducted by Insider Monkey revealed that 28 had owned the company’s shares.
NRG Energy, Inc. (NYSE:NRG) larges investor after Mr. Pzena’s investment firm is Andrew Wellington and Jeff Keswin’s Lyrical Asset Management. It owns 5.5 million shares that are worth $238 million.
3. Halliburton Company (NYSE:HAL)
Pzena Investment Management’s Stake Value: $883 million
Percentage of Pzena Investment Management’s 13F Portfolio: 3.32%
Number of Hedge Fund Holders: 44
Halliburton Company (NYSE:HAL) is an American firm that provides oil exploration companies with equipment and services. These allow the firms to improve their operations, conduct surveying through advanced tools such as artificial intelligence, and utilize equipment such as downhole tools and hydraulic workover units.
Mr. Pzena’s investment firm owned 38 million Halliburton Company (NYSE:HAL) shares by the end of the fourth quarter of last year. These translated into an $883 million stake and represented 3.32% of its investment portfolio. Insider Monkey’s research covering 942 hedge funds for the same time period revealed that 44 had also owned a stake in the energy company.
For its fiscal Q4 Halliburton Company (NYSE:HAL) surpassed analyst expectations and posted $4.2 billion in revenue and $0.02 in non-GAAP EPS, beating estimates for both. RBC Capital raised its price target to $34 from $32 in January 2022, highlighting that strong quarterly performance and a dividend increase indicated management confidence.
Halliburton Company (NYSE:HAL) largest investor after Pzena Investment Management is Natixis Global Asset Management’s Harris Associates. It owns 9.9 million shares that are worth $226 million.
2. Edison International (NYSE:EIX)
Pzena Investment Management’s Stake Value: $1 billion
Percentage of Pzena Investment Management’s 13F Portfolio: 3.82%
Number of Hedge Fund Holders: 25
Edison International (NYSE:EIX) is an American electricity provider that was founded in 1886 and is headquartered in the state of California. The company provides electricity to residential, agricultural, and industrial users among others. It has thousands of circuit miles of overhead and underground lines.
Edison International (NYSE:EIX) earned $3 billion in revenue and $1.16 in non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. Its price target was raised to $82 from $77 in January 2022 by Mizuho, as the firm outlined high EPS growth expectations from the company in the future.
Pzena Investment Management owned 14 million Edison International (NYSE:EIX) shares by the end of Q4 2021. These were worth $1 billion and constituted 3.82% of its investment portfolio. Out of the 924 hedge funds analyzed by Insider Monkey during the fourth quarter of last year, 25 had a stake in the company.
After Mr. Pzena’s investment firm, Edison International (NYSE:EIX)’s largest investor is Stuart J. Zimmer’s Zimmer Partners which owns 1.3 million shares worth $89 million.
1. General Electric Company (NYSE:GE)
Pzena Investment Management’s Stake Value: $1 billion
Percentage of Pzena Investment Management’s 13F Portfolio: 3.92%
Number of Hedge Fund Holders: 58
General Electric Company (NYSE:GE) is an American company that owns a host of businesses. These businesses include the General Electric Power and General Electric Renewable Energy divisions, which are among the largest of their kind in the world. GE Energy produces energy through gas and steam turbines, while GE Renewable focuses on wind and hydro power.
As the fourth quarter of last year came to an end, Pzena Investment Management held a $1 billion stake in General Electric Company (NYSE:GE) through owning 11 million shares. A Q4 2021 Insider Monkey survey of 924 hedge funds revealed that 58 had also owned the company’s shares.
General Electric Company (NYSE:GE) raked in $20 billion in revenue and $0.92 in non-GAAP EPS for its fiscal fourth quarter, in a mixed bag of results that saw it beat analyst estimates for EPS but miss them for revenue. The company reached an agreement with EDF Group in February 2022 through which it would supply the latter with nuclear steam power turbines.
General Electric Company (NYSE:GE)’s largest investor according to Insider Monkey’s research is Andreas Halvorsen’s Viking Global which owns 18 million shares worth $1.7 billion.
Vulcan Value Partners mentioned the company in its third quarter 2021 investor letter. Here is what the fund said:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated to more discounted companies.”
Disclosure: None. You can also take a look at 15 Most Valuable UK Companies in the World and 10 Best Solar Energy Stocks To Buy Now.
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