We recently published a list of Billionaire Ken Griffin’s 10 Midcap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Devon Energy Corporation (NYSE:DVN) stands against Billionaire Ken Griffin’s other midcap stock picks with huge upside potential.
Ken Griffin, the founder of Citadel, is an influential albeit controversial figure in the investment industry. Ken Griffin tasted early success while trading during his college days, and it is safe to say that he has never looked back since. Despite huge setbacks during the financial crisis of 2008, he used his skills and determination to make a comeback where many others would have simply closed the fund and moved on.
The billionaire investor currently manages assets worth around $65 billion across his funds. Owing to its large size and track record of success, Ken Griffin’s stock moves often make it to the news and are closely followed by investors. We decided to do the same, focusing on Mid-cap stocks that still had the potential to turn into established giants tomorrow.
To come up with the list of billionaire Ken Griffin’s 10 midcap stock picks with huge upside potential, we looked at his latest 13F holdings and, among his significant holdings, only considered stocks between $10 billion and $40 billion in market cap. We then looked at the average analyst price target on Wall Street and ranked the stocks according to their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A group of technicians in hazmat suits inspecting a natural gas storage tank.
Devon Energy Corporation (NYSE:DVN)
Stock Upside Potential: 33.59%
Citadel Investment Group’s Stake: $367,530,374
Devon Energy Corporation (NYSE:DVN) operates as an independent energy company. It focuses on the development, exploration, and production of natural gas, oil, and natural gas liquids. The company’s share price has been declining since late 2022, but the business continues to perform strongly, making it an attractive investment.
Devon Energy (NYSE:DVN) ended 2024 in a strong position. The company generated $738 million in free cash flows, $444 million of which was returned to shareholders. Out of the $444 million, it allocated $300 million for share buybacks. Aided by the integration of Grayson Mill assets and Eagle Ford well productivity, DNV’s oil production also set a new record of 398,000 barrels per day.
Based on strong earnings, the firm updated its 2025 guidance. It is targeting 815,000 Barrels of Oil Equivalent (BOE) per day. Capital spending was lowered by $200 million from the previous outlook. Clay Gaspar pointed out improved operational momentum and capital efficiency from multiple zone projects. The firm highlighted plans to improve annual free cash flows by $1 billion, and analysts are loving it.
Capital One Securities’ Phillips Johnston mentioned:
”The plan itself doesn’t come as a surprise, but we think the size is probably a bit larger than the Street has been expecting. Meaningful [free cash flow] uplift potential, so this looks to be more than just window dressing.”
Overall, DVN ranks 7th on our list of Billionaire Ken Griffin’s midcap stock picks with huge upside potential. While we acknowledge the potential of DVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DVN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
