In this piece, we will take a look at the five oil stocks that are too cheap to ignore. For more stocks, head on over to 10 Oil Stocks That Are Too Cheap To Ignore.
5. Comstock Resources, Inc. (NYSE:CRK)
Share Price as of October 15, 2022: $17.50
Number of Hedge Fund Holders: 25
Comstock Resources, Inc. (NYSE:CRK) is an American oil and gas exploration firm that was set up in 1919 and is headquartered in Frisco, Texas. The firm has more than five trillion cubic feet of proven natural gas reserves and thousands of oil and gas wells.
Comstock Resources, Inc. (NYSE:CRK) is estimated to generate a massive $2 billion in cash flow by the end of next year’s second half based on current natural gas prices. Out of this, the firm can return close to a billion dollars to shareholders as it has no debt repayments until the end of 2024’s first quarter.
The rosy picture for Comstock Resources, Inc. (NYSE:CRK) doesn’t end here, as based on a $6.15 strip price for natural gas, the firm is further estimated to generate a whopping $1.6 billion in cash flow next year. Its shares have appreciated by a whopping 103% on the stock market year to date, and Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 25 had owned its shares.
Out of these, D.E. Shaw’s D E Shaw is Comstock Resources, Inc. (NYSE:CRK)’s largest investor. It owns 41 million shares that are worth $49 million.
4. NexTier Oilfield Solutions Inc. (NYSE:NEX)
Share Price as of October 15, 2022: $9.80
Number of Hedge Fund Holders: 30
NexTier Oilfield Solutions Inc. (NYSE:NEX) provides oil companies with well management and well completion services. These include fracturing services, pumpdown, pipe recovery, and pressure pumping. The company is headquartered in Houston, Texas, the United States.
NexTier Oilfield Solutions Inc. (NYSE:NEX) is slated to grow its revenue to $3.2 billion by the end of this year, to mark more than 100% growth. This will also more than triple its operating income to $600 million and let it post an operating margin of 18% (before depreciation and amortization).
NexTier Oilfield Solutions Inc. (NYSE:NEX)’s shares have appreciated by 142% on the stock market this year, and Piper Sandler set a $12 share price target for the company in October 2022 as it stated that there is long term value in the sector. By the end of this year’s second quarter, 30 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
NexTier Oilfield Solutions Inc. (NYSE:NEX)’s largest investor is Stephen Feinberg’s Cerberus Capital Management which owns 27 million shares that are worth $247 million.
3. Marathon Oil Corporation (NYSE:MRO)
Share Price as of October 15, 2022: $26.96
Number of Hedge Fund Holders: 41
Marathon Oil Corporation (NYSE:MRO) is an oil and gas exploration company that engages in the production of crude oil, natural gas, and natural gas liquids. The firm is headquartered in Houston, Texas.
Marathon Oil Corporation (NYSE:MRO) brought in $2.2 billion in revenue in its second quarter, which marked a 31% sequential growth as the firm benefited from the high demand for natural gas and oil in the wake of the Russian invasion of Ukraine. At the same time, its adjusted net income per share of $1.22 was more than double of what it had posted in the year ago quarter.
Marathon Oil Corporation (NYSE:MRO)’s shares are up 60% year to date and the firm pays an 8 cent dividend for a 1.18% yield. Insider Monkey’s June quarter of 2022 survey revealed that 41 out of 895 hedge funds had held a stake in the company.
Marathon Oil Corporation (NYSE:MRO)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 8.6 million shares that are worth $194 million.
2. Occidental Petroleum Corporation (NYSE:OXY)
Share Price as of October 15, 2022: $66.60
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY) is an American oil company that develops and produces oil and gas all over the globe. The firm explores and develops properties for several products such as oil, natural gas, and natural gas liquids. It is headquartered in Houston, Texas.
Occidental Petroleum Corporation (NYSE:OXY) has the lowest price to earnings (P/E) ratio of 6.5 among its peers which include giants such as Exxon and Chevron. Between 2019 and 2021, the firm has grown its revenue and gross profit by 24% and 29%, respectively.
Morgan Stanley increased Occidental Petroleum Corporation (NYSE:OXY)’s share price target to $76 from $70 in September 2022, as it stated that the Inflation Reduction Act will benefit gas companies. The company’s shares are up by a whopping 115% year to date and it also pays a 13 cent dividend for a 0.78% yield.
As this year’s second quarter ended, 66 out of the 895 hedge funds polled by Insider Monkey had bought Occidental Petroleum Corporation (NYSE:OXY)’s shares.
Occidental Petroleum Corporation (NYSE:OXY)’s largest investor in our database is Warren Buffett’s Berkshire Hathaway which owns 158 million shares that are worth $9.3 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Share Price as of October 15, 2022: $98.81
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is one of the oldest and largest oil companies in the world as it was set up in 1870 and is headquartered in Irving, Texas, the United States. The company operates more than 20,000 oil wells with proven reserves.
Exxon Mobil Corporation (NYSE:XOM)’s latest quarter saw the firm grow its revenue by a massive 70%, with its net earnings coming out to $17.8 billion, which in itself marked for a whopping 400% annual increase – a no small feat for an established and mature company.
Exxon Mobil Corporation (NYSE:XOM) also stands to benefit from the geopolitical uncertainty in the wake of the Russian invasion of Ukraine which has spurred demand for non-Russian oil. Morgan Stanley raised its share price target to $117 from $113 in September 2022, outlining that Exxon Mobil Corporation (NYSE:XOM)’s scale makes it likely to benefit from the Inflation Reduction Act.
Exxon Mobil Corporation (NYSE:XOM)’s shares have jumped by 56% year to date and the firm pays an 88 cent dividend for a 3.55% yield. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 72 had bought the company’s shares.
Out of these, Exxon Mobil Corporation (NYSE:XOM)’s largest investor is Rajiv Jain’s GQG Partners which owns 47 million shares that are worth $4 billion.
Disclosure: None. You can also take a look at 10 Biggest Industries In the US and 11 Best Cyclical Stocks To Buy.
