5 Best Crude Oil Stocks to Buy Today

1. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 50

Price as of November 4, 2021: $113.51

Chevron Corporation (NYSE:CVX) is an oil and gas exploration, production, transportation, refining, and marketing company. The company is riding the momentum of increasing crude oil and natural gas prices and has managed to bring down its operational cost.

On October 29, the company reported strong Q3 2021 results. The revenue of the oil and gas giant was reported to be $44.71 billion, rising by 80% YoY and outperforming the consensus estimate by over $4 billion or 10%. Meanwhile, the EPS for the quarter was $2.96, which beat the analysts’ estimate of $2.21 by 33%. Chevron Corporation (NYSE:CVX) also reported its highest quarterly free cash flow (FCF) on record, which helped the company reduce its debt by $5.6 billion to bring the net-debt to capital ratio below the 20% to 25% level. The company has also paid out dividends of $2.6 billion and repurchased stock worth $625 million.

On November 2, Bill Selesky at Argus maintained a Buy rating and $127 price target on Chevron Corporation (NYSE:CVX). Post the company’s Q3 results, the analyst expects the company’s EPS to be $8.85 as opposed to the previous estimate of $7.78 for the next quarter, anticipating the adverse impact of the COVID-19 pandemic to erode and commodity prices to stay higher in the coming year.

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2021 investor letter. Here’s what the fund said:

“Integrated oil and gas company Chevron Corp. shares meaningfully declined during the quarter as OPEC+ failed to reach a deal, allowing us to establish a position in this lower risk, more diversified company at a sufficient discount to our estimate of intrinsic value.”

Out of the 873 hedge funds being tracked by Insider Monkey, 50 hedge funds held a stake in Chevron at the end of Q2 2021 as opposed to 41 hedge funds in the preceding quarter. This also reflects the rising interest of hedge funds in the corporation.

You can also take a peek at the 10 Most Shorted Stocks Hedge Funds Are Buying and 10 Stocks to Buy According to Bluegrass Capital Partners.

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