Hedge Funds Are Buying These 5 Energy Stocks

3. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 67

Occidental Petroleum Corporation (NYSE:OXY) deals in the acquisition and development of oil and natural gas properties across the United States, the Middle East, Africa, and Latin America. Warren Buffett recently bought billions of dollars worth of the company shares, with his Berkshire Hathaway standing as the firm’s largest Q1 shareholder with 136,37 million shares valued at $7.73 billion. In total, 67 hedge funds were long Occidental Petroleum Corporation (NYSE:OXY) at the end of the first quarter, up from 58 hedge funds a quarter earlier.

On May 31, Mizuho analyst Vincent Lovaglio reiterated a ‘Buy’ rating on Occidental Petroleum Corporation (NYSE:OXY) shares, and increased the price target to $89 from $85. Energy prices around the world have soared on account of a global undersupply, but macro uncertainty, supply chain and logistics constraints, and a shift in corporate behavior act as headwinds for this growth trajectory, according to Lovaglio. He views this as favoring the US exploration and production companies, and raised his price targets by 3% on average, maintaining his preference of gas over oil-weighted firms.

For the quarter ending March, Occidental Petroleum Corporation (NYSE:OXY) reported earnings per share of $2.12, which exceeded estimates by $0.09. Quarterly revenue was recorded at $8.53 billion, up 55.7% in comparison to the same period over last year, and outperforming Street estimates by $473.1 million.

Smead Capital Management, in its Q3 2021 investor letter, talked about Occidental Petroleum Corporation (NYSE:OXY). Here’s what they said:

“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”