Top 5 Oil and Gas Stocks to Invest In

4. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 66

Number four on our list of top oil and gas stocks to invest in, is Devon Energy Corporation (NYSE:DVN). It is a hydrocarbon exploration company that primarily operates in the Barnett Shale. As of 2022, the company has $1.6 billion barrels of oil equivalent of proven reserves, 44% of which is petroleum and 29% is natural gas.

In terms of fundamentals and profitability, the company has a lower-than-industry-average P/E ratio of 10.8 and profit margins of 26%.

Devon Energy has been consecutively growing the cash payouts to its investors for five years. As of June 27, the company has an annual dividend yield of 9.45%. 

On June 10, Mizuho analyst Vincent Lovaglio raised the price target on Devon Energy to $94 from $92 and kept a Buy rating on the stock following the company’s announced acquisition of Rim Rock for $865 million. The transaction adds 15,000 boed and 38,000 net-acres to Devon Energy’s existing Bakken position at four times free-cash-multiple on next 12 month strip.