5 Best 52-Week Low Stocks To Buy Now

2. National Fuel Gas Co. (NYSE:NFG)

Number of Hedge Fund Investors: 23

National Fuel Gas Co. (NYSE:NFG) ranks second in our list of the best 52-week low stocks to buy according to hedge funds.

As of the end of the third quarter of 2023, 23 hedge funds tracked by Insider Monkey had stakes in National Fuel Gas Co. (NYSE:NFG).

Heartland Value Fund made the following comment about National Fuel Gas Company (NYSE:NFG) in its Q3 2023 investor letter:

“Utilities. National Fuel Gas (NYSE:NFG) is another existing holding we added to in the quarter. NFG is an energy company, with regulated utility assets, involved in the production, transportation, and distribution of natural gas. The stock’s correlation with natural gas prices has been high, so it wasn’t too surprising when the stock fell as natural gas prices declined following last year’s benign winter.

But prices are expected to rebound in the coming months now that the supply issue has been addressed with the steep drop in oil gas rig counts. Demand is also set to improve starting in 2025 with the onset of more U.S. liquefied natural gas (LNG) exports. Meanwhile, this is a well-run business with a track record of financial soundness. NFG, for instance, has raised dividends for 53 consecutive years because of the consistent cash flow generation from its midstream and utility segments.

Yet, when looking at valuations, we see a disconnect. NFG is trading at a 20% discount to its historical valuations compared with traditional oil and gas exploration and production stocks. The relative premium it typically garners is a function of the company’s ability to leverage its pipeline infrastructure to capitalize on higher natural gas prices and the stability of non-energy cash flows. We are positioning the portfolio to take advantage of this opportunity.”