Top 5 Oil and Gas Stocks to Invest In

4. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 50

Devon Energy Corporation (NYSE:DVN) is an independent energy company based in Oklahoma that ranks fourth on the list of top 10 oil and gas stocks to invest in. Devon Energy Corporation (NYSE:DVN) operates in the exploration, production, and development of natural gas liquids, natural gas, and crude oil.

On August 3, Devon Energy Corporation (NYSE:DVN) increased its quarterly dividend by 245.5% to $0.38. The company has a forward yield of 5.8%. On September 9, Goldman Sachs maintained a Buy rating on Devon Energy Corporation (NYSE:DVN) with a price target of $36 per share, highlighting the oil company’s dividend strategy. Shares of Devon Energy Corporation (NYSE:DVN) climbed 6.13% in the past five days.

The company has a market cap of $20 billion. In the second quarter of 2021, Devon Energy Corporation (NYSE:DVN) reported an EPS of $0.60, beating estimates by $0.07. The company’s revenue in the second quarter was $2.42 billion and beat revenue estimates by $367.95 million. The company reported that oil production surpassed midpoint guidance in the second quarter, averaging 291,000 barrels per day. 

At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.03 billion in Devon Energy Corporation (NYSE:DVN), down from 52 in the previous quarter worth $1.46 billion.

GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned former WPX Energy, now Devon Energy Corporation (NYSE:DVN), and emphasized their views on the company. Here is what the fund said:

“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”