Top 5 Energy Sector Stocks for 2021

4. Schlumberger Limited (NYSE: SLB)

Despite losing about 15.5% in value over the last 12 months, oil field services and energy company Schlumberger remains on the portfolios of 50 hedge funds out of the 887 tracked by Insider Monkey, as of the end of the fourth quarter. The total value of these stakes is $1.23 billion. In January 2021, the stock was upgraded to Buy from BofA, with the price target hiked to $31 from $27. The bank believes the oil stock would gain from the overall recovery in international demand in the second half of 2021.

Earlier in February, Schlumberger appointed Florence Lambert as CEO of Genvia, the company’s new clean hydrogen production technology venture.

First Eagle Investment Management, which returned 5.64% for the third quarter 2020, highlighted a few stocks in their investor letter, and Schlumberger Limited is one of them. Here is what Baron Asset Fund stated:

“Oilfield services giant Schlumberger struggled to gain traction following the initial pandemic-related selloff of the first quarter. The company has been aggressive in cutting costs in response to the difficult operating environment; it has slashed about 25% of its workforce, reduced its dividend and sold off assets, including its North American hydraulic fracking business. We see Schlumberger’s financial strength and dominant market position as sources of resilience that may potentially enable it to respond positively if and when oil prices rebound.”