5 Stocks that Rebound After Recessions

In this article, we discuss 5 stocks that rebound after recessions. If you want to read about some more stocks that rebound after recessions, go directly to 10 Stocks that Rebound After Recessions. 

5. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 49  

EOG Resources, Inc. (NYSE:EOG) is a Texas-based oil and gas firm. Energy stocks have gained rapidly in the past few months as supply challenges as well as rising tensions in Europe push prices to new highs. In early May, crude oil topped $110 per barrel, sending the shares of oil firms like EOG soaring. On May 5, the company declared a quarterly dividend of $0.75 per share, in line with previous. The forward yield was 2.43%. The board of directors of the company also declared a special dividend of $1.80 per share on the common stock. Since industrial demand rises after recession, energy stocks are set to achieve even higher momentum. 

On May 10, Raymond James analyst John Freeman maintained a Strong Buy rating on EOG Resources, Inc. (NYSE:EOG) stock with a price target of $170, noting that the “yield potential, net cash position, and recent stock underperformance underpins the upgrade”. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in EOG Resources, Inc. (NYSE:EOG), with 8.6 million shares worth more than $1 billion.  

In its Q1 2022 investor letter, Oakmark Funds highlighted a few stocks and EOG Resources, Inc. (NYSE:EOG) was one of them. Here is what the fund said:

“EOG Resources, Inc. (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”