Is Pioneer Natural Resources (PXD) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Dividend Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the third quarter. On an absolute basis, the Strategy had gains in six of 11 sectors in which it was invested for the quarter. The main contributors to Strategy performance were the financials and IT sectors. The materials and industrial sectors, meanwhile, were the main laggards. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Investments Dividend Strategy, in its Q3 2021 investor letter, mentioned Pioneer Natural Resources Company (NYSE: PXD) and discussed its stance on the firm. Pioneer Natural Resources Company is an Irving, Texas-based independent oil and gas exploration and production company with a $48.4 billion market capitalization. PXD delivered a 9.04% return since the beginning of the year, while its 12-month returns are up by 50.26%. The stock closed at $198.33 per share on January 06, 2022.

Here is what ClearBridge Investments Dividend Strategy has to say about Pioneer Natural Resources Company  in its Q3 2021 investor letter:

“Over the last year we have also added a position in Pioneer Natural Resources, a best-in-class producer in the Permian Basin. We added Pioneer as we anticipated rising commodity prices and sought more direct leverage to that trend. Our overweight to energy has benefited our performance this year, in particular through the first half of the year, and we believe the sector, still less than 3% of the S&P 500, remains underinvested and attractive going forward.”

Top Energy Dividend Stocks

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Based on our calculations, Pioneer Natural Resources Company (NYSE: PXD) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PXD was in 48 hedge fund portfolios at the end of the third quarter of 2021, compared to 45 funds in the previous quarter. Pioneer Natural Resources Company (NYSE: PXD) delivered a 7.40% return in the past 3 months.

In December 2021, we published an article that includes PXD in the 10 Best LNG Stocks to Buy Now. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.