Top 5 Oil and Gas Stocks to Invest In

In this article, we take a look at the top 5 oil and gas stocks to invest in. If you want to check out our detailed analysis of the energy sector, go to Top 10 Oil and Gas Stocks to Invest In. 

 5. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 62

Cheniere Energy, Inc. (NYSE:LNG) is a US energy corporation that specializes in the production of Liquified Natural Gas. As of Q1 2022, 62 hedge funds collectively hold $3 billion worth of equity in the company. 

Cheniere Energy, Inc. (NYSE:LNG) took analysts by surprise with quarterly earnings of $7.53 per share in its Q1 results, which were above consensus estimates by a whopping $3.87. Its results on revenue were equally baffling as the company beat analyst estimates by almost $2 billion, with a total revenue of $7.48 billion. 

On May 23, RBC Capital analyst Elvira Scotto raised the price target on Cheniere Energy to $178 from $151 and kept an Outperform rating on the shares post the Q1 results. The analyst is of the view that Cheniere Energy should benefit from strong margins due to its open capacity and added that the company remains well-positioned to benefit from growing demand for LNG. 

Cheniere Energy is a dividend paying stock and has an annual dividend yield of 0.98% as of June 28. Investors of record on May 10 were paid a dividend of $0.33 per share on May 17. This means a $1.32 dividend on an annualized basis. 

Cheniere Energy was highlighted in the Q3 2021 investor letter of ClearBridge Investments. Here is what the firm said:

“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”