In this article, we discuss the 5 best crude oil stocks to buy today. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Crude Oil Stocks To Buy Today.
05. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders as of Q2, 2022: 47
Suncor Energy Inc. (NYSE:SU) is an energy company based in Canada. The company focuses mainly on developing petroleum resource basins in Canada’s Athabasca oil sands. It also explores, acquires, develops, produces, transports, refines, and markets crude oil in Canada and internationally.
On October 19, analyst Lloyd Byrne at Jefferies initiated coverage of Suncor Energy Inc. (NYSE:SU) with a Hold rating and a C$44 price target. The EPS of Suncor Energy Inc. (NYSE:SU) is anticipated to increase by 15.01% during the following three to five years. The company’s one-year dividend growth rate is now 82.04%, which clearly demonstrates its reliability as a dividend payer. The yearly revenue increase for Suncor Energy Inc. (NYSE:SU) is 64.4%, while the yearly growth in operational cash flow is 125.58%.
According to the Insider Monkey data on 895 leading hedge funds, 47 hedge funds were long Suncor Energy Inc. (NYSE:SU) shares as of Q2 2022, with the total shares held by hedge funds valued at $2.4 billion. Arrowstreet Capital was the largest shareholder on record with ownership of 16.6 million shares valued at $583 million.
04. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders as of Q2, 2022: 57
Devon Energy Corporation (NYSE:DVN) is an independent energy company that primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids. On October 19, Jefferies analyst Lloyd Byrne began coverage of Devon Energy Corporation (NYSE:DVN) with a Hold rating and a $75 price target.
On August 1, Devon Energy Corporation (NYSE:DVN) declared a $1.55 per share quarterly dividend, a 22% increase from its last dividend of $1.27. This dividend has a fixed and variable component, and in Q2 2022, the board approved an increase in the fixed dividend of 13% or $0.02 per share. The dividend was paid to shareholders on September 30. As of the close of Q2 2022, 57 hedge funds tracked by Insider Monkey owned stakes in Devon Energy Corporation (NYSE:DVN), compared with 66 in the previous quarter. These stakes are collectively valued at $1.48 billion. With roughly 15 million DVN shares, GQG Partners was the company’s leading stakeholder in Q2.
GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:
“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”
03. Antero Resources Corporation (NYSE:AR)
Number of Hedge Fund Holders as of Q2, 2022: 64
Antero Resources Corporation (NYSE:AR) is an American oil and natural gas company. The company has access to hundreds of thousands of acres of drilling sites and millions of cubic feet of proven reserves. As of October 20, the stock had a PE multiple of 11x and a year-to-date gain of 97.24%. The business has free cash flows of over $2.1 billion. On October 19, Jefferies analyst Lloyd Byrne initiated coverage of Antero Resources Corporation (NYSE:AR) with a Buy rating and a $47 price target.
The hedge fund sentiment for the stock is positive. At the close of Q2 2022, Antero Resources Corporation (NYSE:AR) was spotted on 19 hedge fund portfolios. These funds held stakes of $121.35 million in the company, up from $115.88 million in the previous quarter with 17 positions. Out of the 895 hedge funds tracked by Insider Monkey, Zach Schreiber’s Point State Capital is Antero Resources Corporation (NYSE:AR)’s largest investor. It owns 4.2 million company shares, which are worth $129 million.
02. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders as of Q2, 2022: 66
Occidental Petroleum Corporation (NYSE:OXY) is an American oil company that develops and produces oil and gas all over the globe. The firm explores and develops properties for several products, such as oil, natural gas, and natural gas liquids. Occidental Petroleum Corporation (NYSE:OXY) is one of the best energy stocks to buy right now. The company has gained almost 124% this year as of October 20 and is currently trading at a trailing 12-month PE ratio of 6.62. Occidental Petroleum Corporation (NYSE:OXY) is a dividend-paying company. It has a forward dividend yield of 0.76% as of October 20.
Wall Street believes Occidental Petroleum Corporation (NYSE:OXY) will prosper. On October 19, Barclays analyst Jeanine Wai reaffirmed her Overweight rating and increased her price target for Occidental Petroleum Corporation (NYSE:OXY) from $75 to $84.
At the end of Q2 2022, Occidental Petroleum Corporation (NYSE:OXY) was a part of 66 investment portfolios. These funds held stakes of $13.75 billion in the company, up from $12.61 billion in the previous quarter with 67 positions. As of June 30, Berkshire Hathaway is the most prominent investor in Occidental Petroleum Corporation (NYSE:OXY) and has stakes worth more than $9 billion in the company.
Here is what Smead Value Fund has to say about Occidental Petroleum Corporation in its Q3 2022 investor letter:
“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”
01. Chesapeake Energy Corporation (NYSE:CHK)
Number of Hedge Fund Holders as of Q2, 2022: 67
Topping our list of 10 best crude oil stocks to buy today is Chesapeake Energy Corporation (NYSE:CHK). Chesapeake Energy Corporation (NASDAQ:CHK) is an independent exploration and production company that engages in the acquisition, exploration, and development of properties for producing oil, natural gas, and natural gas liquids from underground reservoirs. The company is one of the best energy stocks to invest in. It has an impressive dividend profile. On August 2, the firm declared a quarterly dividend of $0.55 per share. The forward yield was a solid 2.21%.
On October 19, analyst Lloyd Byrne at Jefferies began covering Chesapeake Energy Corporation (NASDAQ:CHK) with a Buy rating and a $150 price target. Among the hedge funds tracked by Insider Monkey, 67 were long Chesapeake Energy Corporation (NYSE:CHK) in Q2 2022, with combined stakes worth $3.5 billion. Oaktree Capital Management is a leading shareholder in Chesapeake Energy Corporation (NASDAQ:CHK), with 10 million shares worth more than $851 million.
Here is what ClearBridge Investments Dividend Strategy has to say about Chesapeake Energy Corporation (NYSE:CHK) in its Q1 2022 investor letter:
“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producers Chesapeake (NYSE:CHK). Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers (…read more)
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