5 Best Commodity Stocks To Buy According to Hedge Funds

In this article, we will be taking a look at the 5 best commodity stocks to buy according to hedge funds. To read our detailed analysis of the commodity sector, you can go directly to see the 12 Best Commodity Stocks to Buy According to Hedge Funds.

5. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 50

Newmont Corporation (NYSE:NEM) is a gold exploration company. It is based in Denver, Colorado.

Carey MacRury at Canaccord upgraded shares of Newmont Corporation (NYSE:NEM) from Hold to Buy on March 14.

In the fourth quarter, Newmont Corporation (NYSE:NEM) produced 5.7-6.3 million ounces of gold. Company revenues came in at $3.2 billion, beating estimates by $102.56 million. Analysts on Wall Street see the stock as a Moderate Buy, with six Buy ratings and five Hold ratings, according to TipRanks.

In total, 50 hedge funds were long Newmont Corporation (NYSE:NEM) in the fourth quarter, with a total stake value of $991 million.

4. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 50

Bunge Limited (NYSE:BG) is an agricultural products and services company. It is based in Saint Louis, Missouri.

Ben Kallo at Baird holds a Neutral rating on Bunge Limited (NYSE:BG) shares as of February 9.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 50 hedge funds were long Bunge Limited (NYSE:BG). Their total stake value was $992 million.

3. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 55

Devon Energy Corporation (NYSE:DVN) is an oil and gas exploration and production company. It is based on Oklahoma City, Oklahoma.

Mizuho’s Nitin Kumar holds a Buy rating on Devon Energy Corporation (NYSE:DVN) shares as of March 10.

In the fourth quarter, Devon Energy Corporation (NYSE:DVN) noted that its cash balances increased by $144 million year-over-year, reaching about $1.5 billion. This resulted in the company ending the quarter with a net debt-to-EBITDA ratio of 0.5x, which indicates its strong investment-grade financial position.

Devon Energy Corporation (NYSE:DVN) was found among the 13F holdings of 55 hedge funds in the fourth quarter, with a total stake value of $823 million.

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 57

Chevron Corporation (NYSE:CVX) is an integrated oil and gas company. It is based in San Ramon, California.

Wells Fargo analyst Roger Read holds an Overweight rating on Chevron Corporation (NYSE:CVX) shares as of March 2.

With six Buy ratings and eight Hold ratings placed on Chevron Corporation (NYSE:CVX) shares, analysts on Wall Street see the stock as a Moderate Buy. In the fourth quarter, the company generated revenues of $56.47 billion, up 17.34% year-over-year.

Our hedge fund data for the fourth quarter shows 57 funds long Chevron Corporation (NYSE:CVX). Their total stake value was $32.2 billion.

Carillon Tower Advisers, an investment management company, mentioned Chevron Corporation (NYSE:CVX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 79

Exxon Mobil Corporation (NYSE:XOM) is another integrated oil and gas company on our list. It is based in Irving, Texas.

Mizuho analysts hold a Buy rating on Exxon Mobil Corporation (NYSE:XOM) shares as of March 10.

There were 79 hedge funds long Exxon Mobil Corporation (NYSE:XOM) in the fourth quarter, with a total stake value of $7.1 billion.

See also 10 Best Performing Commodity ETFs in 2022 and 11 Best Commodity Stocks To Buy Now.