5 Stocks to Buy According to Roger Ibbotson’s Zebra Capital

3. Chesapeake Energy Corporation (NASDAQ:CHK)

Zebra Capital’s Stake Value: $1.123 million

Number of Hedge Fund Holders :59

Another one of the top 10 stocks to buy according to Roger Ibbotson’s Zebra Capital is Chesapeake Energy Corporation (NASDAQ:CHK), an energy company and engages in hydrocarbon exploration. Chesapeake Energy Corporation (NASDAQ:CHK)  produces around 463,000 barrels of oil every day, with over 70% of it being natural gas, and has nearly 1,600 million barrels of oil reserves. These impressive stats have allowed it to record sales of nearly $5.8 billion in 2021.

Chesapeake Energy Corporation (NASDAQ:CHK) recently doubled its authorization for common stock and warrant repurchase from $1 billion to $2 billion, even as its top executives have bought up more stock in the company, and insiders purchasing shares is always a good indicator of the potential of the stock.

ClearBridge Investments mentioned Chesapeake Energy Corporation (NASDAQ:CHK) in its Q1 2022 investor letter. Here is what it said:

“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producers Chesapeake (NYSE:CHK).

Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers.

The surplus of natural gas in North America has resulted in low prices and weak earnings for gas-focused producers. Exports, while growing, are restrained by the high cost of building export infrastructure. Europe, in a Faustian bargain, has relied on abundant, inexpensive Russian gas transported by pipeline.”