5 Most Undervalued Natural Gas Stocks To Buy According To Hedge Funds

In this article, we discuss 5 most undervalued natural gas stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 11 Most Undervalued Natural Gas Stocks To Buy According To Hedge Funds. 

5. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 64

P/E Ratio as of January 20: 8.65

ConocoPhillips (NYSE:COP) was founded in 1917 and is headquartered in Houston, Texas. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. On January 12, ConocoPhillips (NYSE:COP) and Venezuelan national oil company PdVSA are considering a proposal that could allow the U.S. company to load, transport, and sell Venezuela’s oil in the United States, which would give ConocoPhillips (NYSE:COP) a chance to recover the money it lost in Venezuela and help the U.S. meet its energy needs. It is one of the most undervalued natural gas stocks to invest in according to elite hedge funds. 

On January 19, Truist analyst Neal Dingmann maintained a Buy recommendation on ConocoPhillips (NYSE:COP) but lowered the firm’s price target on the shares to $148 from $155. He expects ConocoPhillips (NYSE:COP)’s Q4 results to be impacted by volume and pricing challenges similar to those reported by some of its peers. However, he anticipates that the company’s 2023 EBITDA and earnings per share will be higher than the Street’s estimates. 

According to Insider Monkey’s Q3 data, 64 hedge funds were long ConocoPhillips (NYSE:COP), compared to 71 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with approximately 7 million shares worth $708.5 million. 

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund 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.”