5 Best Energy Stocks for 2022

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 56

ConocoPhillips (NYSE:COP) is gaining popularity among elite hedge funds. At the close of the fourth quarter of 2021, 56 hedge funds were long ConocoPhillips (NYSE:COP) with combined stakes of $1.55 billion. This is compared to 49 hedge funds in the previous quarter with stakes worth $1.37 billion.

On May 5, ConocoPhillips (NYSE:COP) released market-beating earnings for the fiscal first quarter of 2022. The company reported earnings per share of $3.27, beating expert estimates by $0.05, which equates to a net income of $4.3 billion. The company also declared a quarterly cash dividend of $0.46 per share of common stock, payable on June 1 to investors of record at the close of business on May 17. Moreover, ConocoPhillips (NYSE:COP) also announced a  third-quarter variable return of cash of 0.70 per share, payable July 15, 2022, to shareholders of record at the close of business on June 28, 2022.

On April 25, 2022, Raymond James analyst John Freeman raised his price target on ConocoPhillips (NYSE:COP) to $160 from $120 and maintained a Strong Buy rating on the shares.

ConocoPhillips (NYSE:COP) is undervalued, pays dividends, and is experiencing bullish trading volumes, which is why it is ranked among the top 3 best energy stocks to buy in 2022. As of May 7, the stock has a dividend yield of 1.71%, a forward PE ratio of 7.61, and has gained 88.93% over the past twelve months.

Fisher Asset Management is the most prominent shareholder in ConocoPhillips (NYSE:COP) as of the end of December 2021. The fund’s stakes in the company were valued at $447.08 million, which covers 0.25% of Ken Fisher’s hedge fund portfolio.

ConocoPhillips (NYSE:COP) was one of ClearBridge Investments’ top Q1 2022 contributors. Here is what the firm had to say about the stock in its first-quarter 2022 investor letter:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”