10 Oil & Gas Stocks to Buy Today According To Rajiv Jain’s GQG Partners

In this piece, we will take a look at the ten oil and gas stocks to buy today according to Rajiv Jain’s GQG Partners. If you want to skip the details about the hedge fund investor and the fund itself, then head on over to 5 Oil & Gas Stocks to Buy Today According To Rajiv Jain’s GQG Partners.

Mr. Rajiv Jain is at the helm of affairs of the investment firm GQG Partners. GQG Partners is based out of Florida, United States, and Mr. Jain is currently serving as the firm’s chairman and chief investment officer. Both of these are crucial roles that keep the executive involved not only in the firm’s long term goals and strategy as its chairman, but they also allow him to oversee the firm’s investment decisions through the role of its head of investments.

Mr. Jain set up GQG Partners in June 2016 and since then he has played a crucial role in the firm’s growth. He has more than three decades of experience in the financial world. He started out his career in the industry in the early 1990s when he joined the Swiss Bank as an equity analyst. After a brief stint at the firm, Mr. Jain would then go on to join the multi-boutique asset management firm Vontobel Asset Management.

After leaving Vontobel in May 2016, Mr. Jain set up GQG Partners only a month later in June. In addition to being the firm’s chairman and investment chief, the executive is also responsible for managing GQG’s long only equity strategies as an analyst and portfolio manager. GQG provides investment vehicles from a variety of entities such as mutual funds and private funds. It focuses on what to expect from its target companies’ future, by conducting research on a variety of financial metrics.

All this has contributed towards making the firm a multi billion dollar entity. This is evidenced by its portfolio, which according to Insider Monkey’s research, stood at $40 billion as the fourth quarter of last year came to an end. A cursory look at the companies present inside it reveals that GQG Partners takes a diversified approach to investment, with firms from several sectors present in the portfolio.

In this piece, we will zoom in on the oil and gas stocks that the hedge fund has invested in. The top three investments for this sector are in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), Exxon Mobil Corporation (NYSE:XOM), and Occidental Petroleum Corporation (NYSE:OXY). However, as mentioned above, the portfolio is quite diverse, and some of its favorite investments are in Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT).

Our Methodology

In order to pick out the top oil and gas holdings of Mr. Jain’s investment firm, we scoured through GQG’s filings with the securities and exchange commission for the fourth quarter of last year. This enabled us to identify the top ten stock picks, following which we analyzed the firms through their quarterly earnings, investor letters, analyst coverage, other large shareholders, and hedge fund sentiment garnered through Insider Monkey’s survey of 924 funds for Q4 2021.

Oil & Gas Stocks to Buy Today According To Rajiv Jain’s GQG Partners

10. CMS Energy Corporation (NYSE:CMS)

GQG Partners’ Stake Value: $3.4 million

Percentage of GQG Partners’ 13F Portfolio: <0.01%

Number of Hedge Fund Holders: 25

CMS Energy Corporation (NYSE:CMS) is an American utility provider that is headquartered in the state of Michigan. The company has three divisions, which cover electricity, gas, and enterprises. Through its gas division, the company buys, stores, transmits and sells natural gas to its customers.

GQG Partners owned 52,425 CMS Energy Corporation (NYSE:CMS) shares by the end of the fourth quarter of last year, which translated into a $3.4 million stake. During the same time period, 25 out of the 924 hedge funds polled by Insider Monkey also held a stake in the company.

CMS Energy Corporation (NYSE:CMS) earned $2 billion in revenue and $0.40 in GAAP EPS for its fiscal fourth quarter, in a mixed bag of results that saw it beat analyst estimates only for revenue. BMO Capital raised the company’s share price target to $75 from an earlier $70 in March 2022, highlighting that several factors such as earnings per share, regulatory environment, and management execution are favorable.

CMS Energy Corporation (NYSE:CMS)’s largest investor is Stuart J. Zimmer’s Zimmer Partners. It owns 2.6 million shares that are worth $175 million.

Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG),  and Walmart Inc. (NYSE:WMT) are met by CMS Energy Corporation (NYSE:CMS) in the list of GQG Partners’ top stock picks.

9. Chevron Corporation (NYSE:CVX)

GQG Partners’ Stake Value: $4.5 million

Percentage of GQG Partners’ 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 56

Chevron Corporation (NYSE:CVX) is a large oil company that is involved in both exploration and refinement. The company operates exploration and production facilities for oil and natural gas. Additionally, it is also involved in the refining and marketing of crude oil products.

For its fiscal Q4, Chevron Corporation (NYSE:CVX) reported $48 billion in revenue and $2.56 in non-GAAP EPS, beating analyst estimates for revenue only. Morgan Stanley downgraded its stock to Equal Weight and kept the share price target at $166 in March 2022, stating that recent strong performance by the shares carries the worry of overvaluation.

By the end of Q4 2021, Mr. Jain’s investment firm had owned 38,725 Chevron Corporation (NYSE:CVX) shares which were worth $4.5 million and represented 0.01% of its investment portfolio. During the same time period, 56 of the 924 hedge funds surveyed by Insider Monkey also owned the company’s shares.

Warren Buffett’s Berkshire Hathaway is Chevron Corporation (NYSE:CVX)’s largest investor through a $4.4 billion stake that comes via 38 million shares.

8. Exelon Corporation (NASDAQ:EXC)

GQG Partners’ Stake Value: $207 million

Percentage of GQG Partners’ 13F Portfolio: 0.51%

Number of Hedge Fund Holders: 47

Exelon Corporation (NASDAQ:EXC) is an American utility company that has stakes in several kinds of energy generation such as wind power, fossil fuels, hydroelectric and solar energy. It is involved in the purchase, transmission, and sales of natural gas to retail users.

By the end of the fourth quarter of last year, GQG Partners owned 3.5 million Exelon Corporation (NASDAQ:EXC) shares. These were worth $207 million and represented 0.51% of its investment portfolio. An Insider Monkey survey for the same time period which covered 924 hedge funds revealed that 47 had owned the company’s shares; an all time high since the start of 2013.

Exelon Corporation (NASDAQ:EXC) earned $8.9 billion in revenue and $1.09 in non-GAAP EPS for its fiscal Q4, in a strong set of results that beat analyst estimates for both. Mizuho raised the company’s share price target to $46 from $43 in March 2022, as it stated that its forecasts hint at earnings growth.

Stuart J. Zimmer’s Zimmer Partners is Exelon Corporation (NASDAQ:EXC)’s largest investor. It has a $245 million stake through 4.2 million shares.

ClearBridge Investments mentioned the company in its third quarter 2021 investor letter. Here is what the fund said:

“Turning to the U.S. and Canada region, U.S. electric utility Exelon Corporation (NASDAQ:EXC) performed well during the quarter. Exelon is a U.S. energy provider with one of the cleanest and lowest-cost power generation fleets. Its utilities serve millions of electric and gas customers across Delaware, Illinois, Maryland, New Jersey, Pennsylvania and the District of Columbia. The share price of Exelon Corporation (NASDAQ:EXC) benefited from rising power prices and potential federal support for nuclear energy.”

7. Fortis Inc. (NYSE:FTS)

GQG Partners’ Stake Value: $313 million

Percentage of GQG Partners’ 13F Portfolio: 0.77%

Number of Hedge Fund Holders: 9

Fortis Inc. (NYSE:FTS) is one of the oldest companies in the world, after being founded in 1885. It is headquartered in Canada and is responsible for providing electricity and natural gas to customers in the U.S., Canada, and the Caribbean. The company owns thousands of kilometers of natural gas pipelines and distributes natural gas to more than a million customers in Canada.

Fortis Inc. (NYSE:FTS) posted $0.63 in non-GAAP EPS for its fiscal fourth quarter, managing to beat analyst estimates by $0.07. BMO Capital raised its share price target to CAD$60 from CAD$57 in March 2022, alongside keeping a Market Perform rating for the shares.

Mr. Jain’s GQG Partners had a $313 million stake in Fortis Inc. (NYSE:FTS) by the end of Q4 2021. This was through owning 6.4 million shares and it represented 0.77% of the firm’s portfolio. During the same time period, nine out of 924 hedge funds part of Insider Monkey’s research had also held a stake in the company.