5 Best Energy Stocks To Invest In According to Analysts

In this article, we will take a look at the 5 best energy stocks to invest in according to analysts. If you want to explore similar stocks, you can go to 12 Best Energy Stocks To Invest In According to Analysts.

5. Valero Energy Corporation (NYSE:VLO)

Average Analyst Price Target as of April 11: $164.33

Average Upside Potential as of April 11: 20.31%

Number of Hedge Fund Holders: 47

Over the past 3 months, Valero Energy Corporation (NYSE:VLO) has received 14 Buy ratings from analysts and has an average price target of $164.33, as of April 11. The stock’s average price target implies an upside of 20.31% from its share price on April 11. Valero Energy Corporation (NYSE:VLO) is one of the best energy stocks to buy now.

On April 6, Barclays analyst Theresa Chen raised her price target on Valero Energy Corporation (NYSE:VLO) to $166 from $159 and maintained an Overweight rating on the shares. As of April 11, the stock has gained 35.64% over the past 12 months.

At the end of Q4 2022, 47 hedge funds were long Valero Energy Corporation (NYSE:VLO) and disclosed positions worth $978 million in the company. Of those. As of December 31, AQR Capital Management is the top stockholder in the company and has a position worth $165 million.

4. Phillips 66 (NYSE:PSX)

Average Analyst Price Target as of April 11: $128.80

Average Upside Potential as of April 11: 20.69%

Number of Hedge Fund Holders: 36

36 hedge funds disclosed having stakes in Phillips 66 (NYSE:PSX) at the close of the fourth quarter of 2022. The total value of these stakes amounted to $819 million. As of December 31, Citadel Investment Group is the largest shareholder in the company and has a stake worth $181.6 million.

On March 28, JPMorgan raised its price target on Phillips 66 (NYSE:PSX) to $120 from $112 and maintained an Overweight rating on the shares. As of April 11, the stock has returned 29.88% to shareholders over the past 12 months.

Phillips 66 (NYSE:PSX) has received 6 Buy ratings and 4 Hold ratings from Wall Street analysts over the past 3 months. The stock has an average price target of $128.80, as of April 11, and an average upside potential of 20.69%. Phillips 66 (NYSE:PSX) is placed fourth among the best energy stocks to buy now according to analysts.

3. EOG Resources, Inc. (NYSE:EOG)

Average Analyst Price Target as of April 11: $149.53

Average Upside Potential as of April 11: 22.67%

Number of Hedge Fund Holders: 50

EOG Resources, Inc. (NYSE:EOG) is one of the best energy stocks to buy now. The stock has received 15 Buy ratings from analysts over the past 3 months and has an average price target of $149.53, as of April 11. The stock’s average price target implies an upside of 22.67% from current levels.

This March, Morgan Stanley updated its price target on EOG Resources, Inc. (NYSE:EOG) to $132 from $140 and reiterated an Overweight rating on the shares.

EOG Resources, Inc. (NYSE:EOG) was held by 50 hedge funds at the end of the fourth quarter of 2022. These funds held collective positions worth $1.19 billion in the company. As of December 31, Harris Associates is the top investor in the company and has a position worth $792 million.

Artisan Partners made the following comment about EOG Resources, Inc. (NYSE:EOG) in its Q4 2022 investor letter:

“Our top three contributors for the full year were two energy holdings—Schlumberger and EOG Resources, Inc. (NYSE:EOG)—and health care company Merck. EOG is a US shale-focused E&P company. The current supportive commodity price environment and EOG’s continuing to deliver on its production goals and capex plans have led investors to bid up shares. Its commitment to return excess capital to shareholders via regular and special dividends is also highly appealing, particularly in a period of rising interest rates. The company has proven its ability to create economic value for shareholders, even over the past decade that included the toughest energy commodity environment of the last 30+ years. The company’s strong balance sheet enabled it to increase production capabilities during the downturn. EOG has a low-cost production position with a strong reserve base, giving it an advantage versus peers. Further, EOG’s management focuses on return on invested capital and cash flow generation, distinguishing it from most of the company’s competitors who prioritize growth over profitability.”

2. ConocoPhillips (NYSE:COP)

Average Analyst Price Target as of April 11: $134.25

Average Upside Potential as of April 11: 25.61%

Number of Hedge Fund Holders: 67

This April, Truist raised its price target on ConocoPhillips (NYSE:COP) to $167 from $151 and reiterated a Buy rating on the shares. As of April 11, the stock has gained 6.75% over the past 12 months.

ConocoPhillips (NYSE:COP) has received 12 Buy ratings and 4 Hold ratings from Wall Street analysts over the past 3 months and has a consensus Strong Buy rating. The stock has an average price target of $134.25, as of April 11, and has an average upside potential of 25.61%. ConocoPhillips (NYSE:COP) is one of the best energy stocks to buy now.

At the end of the fourth quarter of 2022, 67 hedge funds were eager on ConocoPhillips (NYSE:COP) and held stakes worth $2.98 billion in the company.  Of those, Diamond Hill Capital was the leading shareholder and held a position worth $650.5 million.

Here is what ClearBridge Investments had to say about ConocoPhillips (NYSE:COP) in its Q4 2022 investor letter:

“The risk-on environment supported by China reopening drove strong returns for the energy sector, despite underlying commodity prices falling from recent highs. In the portfolio, leading E&P company ConocoPhillips (NYSE:COP) was again among the top contributors; it maintains one of the best balance sheets in the industry and continues to execute well while benefiting from being a low-cost producer and growing liquefied natural gas demand. ConocoPhillips is also investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with industry-low CO2 intensity.”

1. Schlumberger Limited (NYSE:SLB)

Average Analyst Price Target as of April 11: $66.27

Average Upside Potential as of April 11: 29.59%

Number of Hedge Fund Holders: 67

At the close of the fourth quarter of 2022, 67 hedge funds were long Schlumberger Limited (NYSE:SLB) and held positions worth $4.66 billion in the company. Of those, First Eagle Investment Management was the top shareholder in the company and held a position worth $1.47 billion in the company.

On April 3, Susquehanna updated its price target on Schlumberger Limited (NYSE:SLB) to $65 from $68 and maintained a Positive rating on the shares. As of April 11, the stock has gained 21.70% over the past 6 months. Schlumberger Limited (NYSE:SLB) is ranked high among the best energy stocks to buy now.

Over the past 3 months, Schlumberger Limited (NYSE:SLB) has received 11 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock’s average price target of $66.27 represents an upside of 29.59% from its share price on April 11.

VGI Partners made the following comment about Schlumberger Limited (NYSE:SLB) in its 2022 annual investor letter:

“In addition to defence, we have focused our efforts on other new sectors where we see structural growth, including energy and medical technology. The long-term outlook for energy looks highly attractive given many years of under-investment and more recently amplified by ESG constraints and corporate discipline. Although we reviewed commodity owners (where we leveraged the expertise of the Regal resources team), we focused our efforts on the second derivative – the oil service companies. These are the picks-and-shovels of the industry and arguably the highest-quality way to gain exposure. As a result, we invested in Schlumberger Limited (NYSE:SLB) earlier this year and grew this to a circa 8% weight during the year (now circa 3%)”

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