5 Best Energy Stocks to Buy Now

3. Devon Energy Corporation (NYSE: DVN)

Number of Hedge Fund Holders: 52 

Devon Energy Corporation (NYSE: DVN) is an independent energy company, operating in the exploration, development, and production of oil, natural gas, and natural gas liquids in the US. It ranks 3rd on our list of the best energy stocks to buy now.

This July, Truist raised its price target on Devon Energy Corporation (NYSE: DVN) from $35 to $42 with a Buy rating on the shares, while the month before that, Bernstein upgraded the stock to Outperform. Devon Energy Corporation (NYSE: DVN) has also revealed that it is planning to achieve its goal of net-zero greenhouse gas emissions by 2050.

In the first quarter of 2021, Devon Energy Corporation (NYSE: DVN) had an EPS of $0.45, beating estimates by $0.13. The company’s revenue was $1.76 billion, crossing the previous quarter’s $1.28 billion revenue, and it has a gross profit margin of 44.19%. The stock has gained 51.45% in the past 6 months and 72.10% year to date as well.

As of the end of the first quarter of 2021, 52 hedge funds held stakes in Devon Energy Corporation (NYSE: DVN) worth roughly $1.46 billion. This is compared to 45 hedge funds in the previous quarter with a total stake value of approximately $709 million.

GoodHaven Capital Management, a concentrated portfolio investment management firm, mentioned Devon Energy Corporation (NYSE: DVN) in its fourth-quarter 2020 investor letter. Here’s what they 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.”