In this article, we discuss the top 5 oil and gas stocks to invest in. If you want to read our detailed analysis of these companies, go directly to the Top 10 Oil and Gas Stocks to Invest In.
5. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 48
Marathon Petroleum Corporation (NYSE:MPC) is an Ohio-based downstream energy company and it ranks fifth on the list of top 10 oil and gas stocks to invest in. The company produces and sells refined transportation fuel, propylene, and aromatics. Marathon Petroleum Corporation (NYSE:MPC) also operates in the midstream oil and gas segment where it stores and transports refined products and crude oil.
In August, Marathon Petroleum Corporation (NYSE:MPC) joined a venture with Chicago-based crop trader Archer-Daniels-Midland Company (NYSE:ADM) to produce soybean oil. The resulting soybean oil will be supplied solely to Marathon Petroleum Corporation’s (NYSE:MPC) new renewable diesel facility, which is scheduled to open in 2023. Shares of Marathon Petroleum Corporation (NYSE:MPC) jumped 3.08% in the previous month.
On September 16, Piper Sandler analyst Ryan Todd kept an Overweight rating on Marathon Petroleum Corporation (NYSE:MPC) and increased his price target for the stock to $69 from $66. Meanwhile, the oil stock has gained 2.3% on August 10 after Goldman Sachs named Marathon Petroleum Corporation (NYSE:MPC) a top pick among oil refiners, highlighting the company’s distinguished capital returns profile.
The company has a market cap of $37 billion. In the second quarter of 2021, Marathon Petroleum Corporation (NYSE:MPC) reported an EPS of $0.67, beating estimates by $0.29. The company’s revenue in the second quarter was $29.83 billion and beat revenue estimates by $8.59 billion.
Marathon Petroleum Corporation (NYSE:MPC) has a dividend yield of 3.93% and pays its shareholders an annual dividend of $2.32 per share.
At the end of the second quarter of 2021, 48 hedge funds in the database of Insider Monkey held stakes worth $2.61 billion in Marathon Petroleum Corporation (NYSE:MPC), up from 46 in the previous quarter worth $1.96 billion.
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.”
3. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 50
ConocoPhillips (NYSE:COP) is a Houston-based oil and gas company and it ranks third on the list of top 10 oil and gas stocks to invest in. ConocoPhillips (NYSE:COP) operates in the transportation, exploration, and production of natural gas, natural gas liquids, bitumen, and crude oil.
On August 24, investment firm Raymond James maintained a Strong Buy rating on ConocoPhillips (NYSE:COP) with a price target of $80 per share. Shares of ConocoPhillips (NYSE:COP) jumped 5.72% in the past five days.
The company has a market cap of $79 billion. In the second quarter of 2021, ConocoPhillips (NYSE:COP) reported an EPS of $1.27, beating estimates by $0.14. The company’s revenue in the second quarter came in at $10.21 billion. The stock has gained 47%, year to date, and 63.3% in the past twelve months.
ConocoPhillips (NYSE:COP) has a dividend yield of 2.92% and pays its shareholders an annual dividend of $1.72 per share.
At the end of the second quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.15 billion in ConocoPhillips (NYSE:COP), down from 51 in the previous quarter worth $1.20 billion.
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 57
Occidental Petroleum Corporation (NYSE:OXY) is a Houston-based energy company and it ranks second on the list of top 10 oil and gas stocks to invest in. The company operates in the exploration, production, and development of oil and gas in the US. In addition, Occidental Petroleum Corporation (NYSE:OXY) has established operations in Latin America, Africa, and the Middle East.
On August 30, Citi analyst Scott Gruber initiated a Buy rating and a $35 price target on Occidental Petroleum Corporation (NYSE:OXY). Shares of Occidental Petroleum Corporation (NYSE:OXY) jumped 7.85% in the past five days.
The company has a market cap of $79 billion. In the second quarter of 2021, Occidental Petroleum Corporation (NYSE:OXY) reported an EPS of $0.32, beating estimates by $0.29. The company’s revenue in the second quarter came in at $6.01 billion and beat revenue estimates by $154.32 million.
Occidental Petroleum Corporation (NYSE:OXY) currently pays its shareholders an annual dividend of $0.04 per share and has a dividend yield of 0.15%.
At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $3.62 billion in Occidental Petroleum Corporation (NYSE:OXY), up from 52 in the previous quarter worth $3.41 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 68
Topping the list of top 10 oil and gas stocks to invest in is Exxon Mobil Corporation (NYSE:XOM). The Texas-based oil giant was founded in 1870 and has since expanded into a variety of oil and gas areas, including upstream, downstream, and petrochemicals.
DZ Bank analyst Werner Eisenmann gave Exxon Mobil Corporation (NYSE:XOM) a Hold rating on August 3 with a price target of $62.50 per share. On the other hand, JPMorgan analyst Phil Gresh remains bullish on Exxon Mobil Corporation (NYSE:XOM) and kept a Buy rating with a price target of $65 per share on September 15.
The company has a market cap of $233 billion. In the second quarter of 2021, Exxon Mobil Corporation (NYSE:XOM) reported an EPS of $1.10, beating estimates by $0.11. The company’s revenue in the second quarter grew 108% year over year to $67.74 billion and beat revenue estimates by $3.02 billion. The stock has gained 33.8%, year to date, and 45.9% in the past twelve months.
At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.69 billion in Exxon Mobil Corporation (NYSE:XOM), up from 65 in the previous quarter worth $2.77 billion.
In the Q2 2021 investor letter of First Eagle Investment Management, the fund mentioned Exxon Mobil Corporation (NYSE:XOM) and discussed its stance on the firm. Here is what the fund said:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long-term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
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