Is Newfield Exploration Co. (NFX) A Good Stock To Buy Right Now?

Seeing as Newfield Exploration Co. (NYSE:NFX) has experienced unchanged sentiment from hedge fund managers, we should take a look at a select few fund managers that slashed their positions entirely in the third quarter. Interestingly, Stuart J. Zimmer’s Zimmer Partners dumped the biggest position of the 700 funds tracked by Insider Monkey, worth an estimated $45.3 million in stock. Vince Maddi and Shawn Brennan’s fund, SIR Capital Management, also dropped its stock, about $29.9 million worth of NFX shares. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Newfield Exploration Co. (NYSE:NFX) but similarly valued. These stocks are Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), Michael Kors Holdings Ltd (NYSE:KORS), Amdocs Limited (NYSE:DOX), and Cemex SAB de CV (ADR) (NYSE:CX). This group of stocks’ market caps are similar to NFX’s market cap.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $535 million. That figure was $738 million in NFX’s case. Michael Kors Holdings Ltd (NYSE:KORS) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Newfield Exploration Co. (NYSE:NFX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.