In this article, we discuss the oil price predictions for 2022 and top 5 energy stocks. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Energy Stocks To Buy for 2022.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 48
Devon Energy Corporation (NYSE:DVN) is an independent oil and gas firm. The company looks set to benefit from the political crisis in Ukraine that has driven the prices of oil higher in recent days after a quiet start to the new year. On January 25, seven out of eight top gainers on the growth-heavy S&P 500 were energy stocks. Russia, one of the top oil producers in the world, is a critical source of energy for Europe and Asia, and an escalation in Ukraine or talk of sanctions could send oil prices surging further in the coming weeks.
The hedge fund sentiment around Devon Energy Corporation (NYSE:DVN) makes for bullish reading as well. Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 13.9 million shares worth more than $493 million.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
4. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 49
Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure firm. A healthy number of top hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Cheniere Energy, Inc. (NYSE:LNG), the same as in the previous quarter worth $2.9 billion.
On January 18, Mizuho analyst Robert Mosca kept a Buy rating on Cheniere Energy, Inc. (NYSE:LNG) stock and raised the price target to $128 from $122, underlining that international gas dislocations could improve the outlook for the firm through 2022 in “Phase 4” expansion.
3. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 49
ConocoPhillips (NYSE:COP) engages in oil and gas exploration and production. The stock has several near-term growth catalysts, including a variable dividend policy, the surge in the share price of natural gas firm Cenovus, and the contingency payments that Conoco expects from Cenovus in the coming months as gas prices register new highs. ConocoPhillips (NYSE:COP) has a large stake in Cenovus. Truist analyst Neal Dingmann recently raised the price target on ConocoPhillips (NYSE:COP) stock to $111 from $100 and kept a Buy rating.
Hedge funds are also bullish on ConocoPhillips (NYSE:COP) as a new fiscal year gets underway. At the end of the third quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in ConocoPhillips (NYSE:COP).
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) is one of the most dependable options in the oil and gas space. In a volatile market, the stock could provide investors with valuable cover and healthy dividends. Chevron Corporation (NYSE:CVX) has registered an incredible 34 years of consecutive dividend growth. This achievement alone speaks volume about the financial stability of the firm and its ability to deliver in bull and bear markets. The stock also stands to benefit from the high energy prices in 2022.
A growing number of hedge funds are piling into Chevron Corporation (NYSE:CVX) stock as inflation fears reach fever pitch. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX), up from 50 in the preceding quarter worth $4.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas firm. Several elite hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Exxon Mobil Corporation (NYSE:XOM), compared to 64 in the preceding quarter worth $3.6 billion.
The legacy oil business of Exxon Mobil Corporation (NYSE: XOM) is thriving and the investments of the firm in emerging energy are also starting to pay off. A renewed focus towards ESG also looks set to help Exxon Mobil Corporation (NYSE: XOM) assuage investor concerns about sustainability as well.
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
