In this article, we will discuss the 5 best energy stocks for 2022. If you want to read our detailed analysis of the energy sector which highlights key trends and major players, you can go to 12 Best Energy Stocks for 2022.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 52
Cheniere Energy, Inc. (NYSE:LNG) is one of the top gainers of 2022 and has reported profitable quarters, which makes it one of the best energy stocks to buy in 2022. This May, Cheniere Energy, Inc. (NYSE:LNG) reported earnings for the fiscal first quarter of 2022. The company reported revenues of $7.48 billion, up 142.20% year over year, and outperformed market consensus by $1.92 billion. The stock also appears to be trading at a discount, making now the right time to stack up some shares. As of May 7, Cheniere Energy, Inc. (NYSE:LNG) has a forward PE ratio of 8.31, and its shares have surged 80.30% over the past twelve months.
Shortly after Cheniere Energy, Inc. (NYSE:LNG) released its earnings report, Mizuho analyst Robert Mosca raised his price target on Cheniere Energy, Inc. (NYSE:LNG) to $159 from $145 and reiterated a Buy rating on the shares.
According to Insider Monkey’s database, 52 hedge funds held stakes in Cheniere Energy, Inc. (NYSE:LNG) at the end of the fourth quarter of 2021. The total value of these stakes was approximately $3.38 billion. This is compared to 49 hedge funds in the third quarter of 2021 with stakes of $3.10 billion.
As of December 31, 2021, Icahn Capital LP is the most prominent shareholder in Cheniere Energy, Inc. (NYSE:LNG) owning more than 16.16 million shares of stock which amount to a stake of $1.63 billion. The investment covers 7.35% of Carl Icahn’s hedge fund portfolio.
ClearBridge Investments published its “Global Infrastructure Value Strategy” third-quarter 2021 investor letter, in which the firm mentioned Cheniere Energy, Inc. (NYSE:LNG). Here is what experts at ClearBridge think about the stock:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Chevron Corporation (NYSE:CVX) is being eyed by analysts in 2022. This May, Credit Suisse analyst Manav Gupta raised his price target on Chevron Corporation (NYSE:CVX) to $190 from $180 and reiterated an Outperform rating on the shares in light of the company’s quarterly results.
On April 29, Chevron Corporation (NYSE:CVX) released an earnings report which presented the company’s performance in the fiscal first quarter of 2022. The company generated revenues of $54.37 billion, up 69.76% year over year from $32.03 billion. Chevron Corporation (NYSE:CVX) reported earnings per share of $3.36. The stock is rising and becoming a lucrative investment driving shareholder returns. As of May 7, Chevron Corporation (NYSE:CVX) has surged 55.78% over the past twelve months, making it one of the best energy stocks to buy in 2022.
Hedge funds are betting bullishly on Chevron Corporation (NYSE:CVX) for some time now. At the end of Q4 2021, Insider Monkey found 53 hedge funds that were bullish on the stock having stakes worth more than $6.50 billion, up from $4.44 billion in the third quarter of 2021 with 51 positions. The hedge fund sentiment for the stock is positive.
As of the end of last December, Berkshire Hathaway is the leading stakeholder in Chevron Corporation (NYSE:CVX). The Warren Buffett-led hedge fund held stakes worth $4.48 billion in the company, up 34% from its Q3 2021 stakes.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its first-quarter 2022 investor letter. Here is what the firm said:
“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 holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
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.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 58
Insider Monkey spotted Occidental Petroleum Corporation (NYSE:OXY) on 58 hedge fund portfolios at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $3.86 billion, up from $3.18 billion in the prior quarter with 60 positions.
This February Occidental Petroleum Corporation (NYSE:OXY) put forth an earnings report which showed the company’s performance in the fourth quarter of 2021. The company’s quarterly revenues saw a growth of 139.25% year over year and were valued at $8.01 billion, outperforming market estimates by $618.52 million. Moreover, the company registered an EPS of $1.48, beating estimates by $0.38. As of May 7, Occidental Petroleum Corporation (NYSE:OXY) has returned 143.86% to investors over the past twelve months, making it the runner-up energy stock to buy in 2022.
Occidental Petroleum Corporation (NYSE:OXY) is gaining bullish views from analysts and investors alike. On April 25, Susquehanna analyst Biju Perincheril raised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $71 from $58 and maintained a Positive rating on the shares.
Carl Icahn’s Icahn Capital LP was the dominating shareholder in Occidental Petroleum Corporation (NYSE:OXY) at the end of the fourth quarter of 2021. The fund’s stakes in the oil giant were valued at $1.30 billion, which represents 5.85% of its 13F portfolio.
Smead Capital Management, an investment management firm, published its “Smead Value Fund” third-quarter 2021 investor letter in which it shared its views on Occidental Petroleum Corporation (NYSE:OXY). Here is what the firm had to say:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
On April 29, Exxon Mobil Corporation (NYSE:XOM) announced earnings for the fiscal first quarter of 2022 in which it beat revenue estimates by $6.93 billion. The company reported earnings per share of $2.07 and generated quarterly revenues of $90.50 billion, up 53.01% year over year from $59.15 billion. Moreover, Exxon Mobil Corporation (NYSE:XOM) also increased its share repurchase program to $30 billion through 2023, as part of its aim to drive investors’ returns.
This May, Cowen analyst Jason Gabelman raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $90 from $77 and reiterated a Market Perform rating on the shares. The analyst holds a positive outlook on the stock and noted that the company is on a path to reaping profits from peer-leading refining exposure through the second quarter of 2022, while facing minor headwinds from elevated maintenance across its portfolio.
Exxon Mobil Corporation (NYSE:XOM) is one of the top stock picks among hedge funds. Insider Monkey found that 71 hedge funds held long positions in Exxon Mobil Corporation (NYSE:XOM) at the close of Q4 2021. The total value of these funds’ stakes was $5.38 billion, up from $4.64 billion in the previous quarter with 64 positions. The hedge fund sentiment for the stock is positive.
As of December 31, 2021, GQG Partners is the top stakeholder in Exxon Mobil Corporation (NYSE:XOM) boasting stakes worth $1.98 billion in the company, up 22% from the fund’s Q3 2021 stakes. The investment covers 4.91% of GQG Partners’ 13F portfolio.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its fourth-quarter 2021 investor letter. Here is what experts at Saturna Capital had to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
You can also take a look at 12 Best Solar Energy Stocks To Invest In and 10 Energy Stocks that Pay Monthly Dividends.
