10 Most Promising Energy Stocks According to Hedge Funds

7. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 72

ConocoPhillips (NYSE:COP) is a major player in the global energy industry, operating a diverse range of conventional and unconventional assets across North America, Europe, and Asia. The company’s balanced portfolio positions it to effectively navigate and benefit from the evolving energy market landscape.

ConocoPhillips (NYSE:COP) recently announced plans to acquire Marathon Oil in an all-stock transaction valued at $22.5 billion. This strategic move positions ConocoPhillips (NYSE:COP) to capitalize on current market trends and the company expects to achieve at least $500 million in cost and capital savings within the first full year after the transaction closes.

In Q2, ConocoPhillips (NYSE:COP) reported strong performance, with production reaching 1,945 MBOED, an 8% year-over-year increase, and an average petroleum price of $81.30 per barrel—10% higher than the previous year. The stock has received a consensus “Strong Buy” rating from analysts.

Here’s what Invesco Growth and Income Fund said about ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:

“Stock selection in the industrials and health care sectors detracted from relative performance during the quarter. Selection and an underweight in consumer staples also hurt relative return as the sector was one of just two index sectors with a positive return for the quarter. ConocoPhillips (NYSE:COP): The company announced its acquisition of Marathon Oil in May. The deal is expected to increase earnings and will increase the scale of Conoco’s production assets. However, the stock traded lower on the news.”