In this article, we discuss the 5 best affordable energy stocks to buy now. If you want to read about some more affordable energy stocks, go directly to 12 Best Affordable Energy Stocks to Buy Now.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 32
Share Price as of December 1: $15.96
Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power markets, and others in North America and internationally. On October 19, Plug Power and Lin Corp, an American manufacturer of ammunition, sodium hydroxide and chlorine, planned a joint venture for the construction of a 15 tons per day hydrogen plant in St. Gabriel, La. Plug Power will be the exclusive marketer of this joint venture’s hydrogen.
On November 10, Truist analyst Bronson Fleig maintained a Hold rating on Plug Power Inc. (NASDAQ:PLUG) stock and lowered the price target to $18 from $32, noting that the company missed the third quarter earnings estimates by a substantial margin.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Plug Power Inc. (NASDAQ:PLUG) with 118.5 million shares worth more than $498.5 million.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 33
Share Price as of December 1: $11.69
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) explores for, produces, and sells oil and gas in Brazil and internationally. On November 18, Petroleo unveiled that it had canceled the sale process of the Regap oil refinery in Brazil’s Minas Gerais state after receiving an insufficient offer for the facility.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm GQG Partners is a leading shareholder in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) with 214.2 million shares worth more than $2.6 billion.
3. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 38
Share Price as of December 1: $19.12
Kinder Morgan, Inc. (NYSE:KMI) operates as an energy infrastructure company in North America. On September 27, Kinder Morgan noted that it sold a 25.5 % equity interest in Elba Liquefaction to an undisclosed financial buyer for $565 million. The value of the equity interest entails an enterprise value of $2.3 billion for Elba, or 13x estimated 2022 EBITDA.
On October 19, Barclays analyst Theresa Chen maintained an Equal Weight rating on Kinder Morgan, Inc. (NYSE:KMI) stock and lowered the price target to $20 from $21, noting that the defensiveness of the core assets in the North America midstream and refining space is satisfactory despite macro headwinds, including those levered to liquefaction and Mid-Con liquids transportation.
At the end of the third quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Kinder Morgan, Inc. (NYSE:KMI), compared to 41 in the previous quarter worth $1.2 billion.
2. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 45
Share Price as of December 1: $32.87
Suncor Energy Inc. (NYSE:SU) operates as an integrated energy company. On October 26, Suncor Energy said that it agreed to buy an additional 21.3% stake in the Fort Hills oil sands project and associated sales and logistic agreements from Teck Resources for C$1 billion in cash.
On November 21, Credit Suisse analyst William Janela maintained an Outperform rating on Suncor Energy Inc. (NYSE:SU) stock and lowered the price target to C$60 from C$63.
At the end of the third quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Suncor Energy Inc. (NYSE:SU), compared to 47 in the preceding quarter worth $2.4 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Suncor Energy Inc. (NYSE:SU) was one of them. Here is what the fund said:
“Also, within the structural bucket, we added to our commodity exposure with the purchase of Suncor Energy (NYSE:SU). Suncor, a past holding, is a Canadian integrated oil company where we capitalized on an attractive valuation due to a COVID-19-induced slowdown. We expect a recovery in oil demand and strong pricing will result in faster-than-expected free cash flow growth and financial deleveraging.
The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out.”
1. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 47
Share Price as of December 1: $46.85
APA Corporation (NASDAQ:APA) explores for, develops, and produces oil and gas properties. On November 28, APA Corporation revealed that it has provided an update on exploration activities in Block 58 offshore Suriname. Total Energies is the operator on the block with 50% working interest and APA holds 50% work interest.
On November 17, Piper Sandler analyst Mark Lear maintained a Neutral rating on APA Corporation (NASDAQ:APA) stock and raised the price target to $49 from $46, noting that production models and fiscal 2023 outlooks are updated post the third quarter results.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in APA Corporation (NASDAQ:APA) with 13.4 million shares worth more than $456.6 million.
In its Q1 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and APA Corporation (NASDAQ:APA) was one of them. Here is what the fund said:
“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer-term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
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