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

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 74

P/E Ratio as of January 20: 5.51

Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. The company operates through three segments – Oil and Gas, Chemical, and Midstream and Marketing. Occidental Petroleum Corporation (NYSE:OXY) was one of the top two percentage gainers from the S&P 500 in 2022, with shares gaining more than double in value during the year. 

On January 9, Mizuho analyst Nitin Kumar initiated coverage of Occidental Petroleum Corporation (NYSE:OXY) with a Buy rating and a price target of $82, up from $81. The analyst believes that Occidental deserves to be compared to companies like InterOil (IOC) and offshore peers, rather than larger independent exploration and production companies. They also believe that Occidental Petroleum Corporation (NYSE:OXY)’s lower sustaining capital expenditure and deep reserve base will allow it to manage cash flow priorities such as growth projects, debt reduction, and equity shareholder returns.

According to Insider Monkey’s data, Occidental Petroleum Corporation (NYSE:OXY) was part of 74 hedge fund portfolios at the end of Q3 2022, compared to 66 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 194.35 million shares worth nearly $12 billion as of the end of September last year. 

Here is what Smead Value Fund has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter include Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”