In this article, we discuss the 5 best energy stocks to invest in today. If you want to read our detailed analysis of the energy stocks and the industry’s future outlook, go directly to 15 Best Energy Stocks to Invest In Today.
5. Devon Energy Corporation (NYSE: DVN)
Number of Hedge Fund Holders: 50
Devon Energy Corporation (NYSE: DVN) is an American energy company engaged in oil and natural gas exploration and production. The company’s operations are focused onshore in the U.S. Devon Energy Corporation (NYSE: DVN) provides environmentally responsible production and a platform for future growth. The company ranks fifth on our list of the best energy stocks to invest in today.
In July, Piper Sandler and Mizuho lifted their price targets on Devon Energy Corporation (NYSE: DVN) to $37 and $38, respectively. Mizuho’s analyst Vincent Lovaglio expects an 8% growth in oil prices that would reflect a positive and long-term gas and energy outlook. In Q2 2021, Devon Energy Corporation (NYSE: DVN) posted an EPS of $0.60, beating the market estimates by $0.07. The consolidated revenue of $2.41 billion grew massively by 511.7% from the prior-year quarter. Devon Energy Corporation (NYSE: DVN) soared 201% in the past year and 79.7% year-to-date.
As of Q2 2021, 50 hedge funds tracked by Insider Monkey have positions in Devon Energy Corporation (NYSE: DVN), worth $1.03 billion.
GoodHaven Capital Management published its Q4 2020 investor letter and mentioned Devon Energy Corporation (NYSE: DVN) in it. Here is what the firm has to say:
“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. ConocoPhillips (NYSE: COP)
Number of Hedge Fund Holders: 50
ConocoPhillips (NYSE: COP) is an American multinational exploration and production company, specializing in hydrocarbon explorations. The company mainly explores and markets crude oil, natural gas, and liquefied natural gas while carrying out their transportations around the world. ConocoPhillips (NYSE: COP) has $85 billion of total assets and exploration activities in over 15 countries. It ranks fourth on our list of the best energy stocks to invest in today.
In Q2 2021, ConocoPhillips (NYSE: COP) posted an EPS of $1.27, beating the market estimates by $0.14. The consolidated revenue for the quarter stood at $10.2 billion, up from $4.01 billion during the same period last year. Piper Sandler analyst, Ryan Todd appreciated the company’s Q2 earnings and lifted the firm’s price target on ConocoPhillips (NYSE: COP) to $80, with an ‘Overweight’ rating on the shares. ConocoPhillips (NYSE: COP) gained 65.1% in the past year and 42.1% year-to-date.
As of Q2 2021, 50 hedge funds tracked by Insider Monkey have positions in ConocoPhillips (NYSE: COP), worth $1.15 billion. The number is compared to 51 hedge funds in the previous quarter, valued at $1.2 billion.
ClearBridge Investments published its first-quarter 2021 investor letter and mentioned ConocoPhillips (NYSE: COP) in it. Here is what the firm has to say:
“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.”
3. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 50
Chevron Corporation (NYSE: CVX) is an American multinational energy company and the second-largest oil company in the country. The company manufactures and sells high-quality refined products, such as gasoline, diesel, premium base oil, and lubricants. Chevron Corporation (NYSE: CVX) has headquarters in California, U.S. It ranks third on our list of the best energy stocks to invest in today.
In Q2 2021, Chevron Corporation (NYSE: CVX) posted an EPS of $1.71, beating the consensus by $0.11. The revenue for the quarter stood at $37.6 billion, presenting a 178.7% growth from the prior-year quarter. In August, Chevron Corporation (NYSE: CVX) announced the launch of fully synthetic transmission fluid, engineered for Allison heavy-duty automatic truck and bus transmissions. Recently, Piper Sandler lifted its price target on Chevron Corporation (NYSE: CVX) to $137, with an ‘Overweight’ rating on the shares. The stock gained 22.9% in the past year.
The number of hedge funds having positions in Chevron Corporation (NYSE: CVX) increased from 41 in Q1 to 50 in Q2 2021. The total value of these stakes is over $4.27 billion.
ClearBridge Investments released its Q1 2021 investor letter and mentioned Chevron Corporation (NYSE: CVX) in it. Here is what the firm has to say:
“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.”
2. NextEra Energy, Inc. (NYSE: NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE: NEE) ranks second on our list of the best energy stocks to invest in today. It is an American clean energy company, which is the largest producer of wind and solar energy in the world. The company has invested between $50 to $55 billion in new energy infrastructure planned through 2022. NextEra Energy, Inc. (NYSE: NEE) is a Fortune 200 company and included in the S&P 100 index.
In July, Credit Suisse assumed coverage of NextEra Energy, Inc. (NYSE: NEE) with an Outperform rating and an $85 price target. The company’s Florida Power and Light reached a four-year settlement agreement that would support the development of 16 million solar panels in over 50 sites. In Q2 2021, NextEra Energy, Inc. (NYSE: NEE) posted an EPS of $0.71, beating the consensus by $0.02. For FY21, the company expects adjusted earnings per share in the range of $2.40-$2.54 versus the estimates of $2.52. In the past six months, NextEra Energy, Inc. (NYSE: NEE) delivered a 20.2% return, while its 12-month returns are up by 22.6%.
As of Q2 2021, 59 hedge funds tracked by Insider Monkey have positions in NextEra Energy, Inc. (NYSE: NEE), worth over $2.6 billion.
1. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 68
Exxon Mobil Corporation (NYSE: XOM) is one of the largest public oil and gas companies in the world. Along with that, the company also employs the use of technologies to meet the growing energy needs. Exxon Mobil Corporation (NYSE: XOM) tops our list of the best energy stocks to invest in today.
In July, BMO Capital Markets initiated its coverage on Exxon Mobil Corporation (NYSE: XOM) with a ‘Market Perform’ rating and a $69 price target. Piper Sandler also lifted its price target on the stock to $69 due to the positive free cash flow outlook for the company. In Q2 2021, Exxon Mobil Corporation (NYSE: XOM) posted a GAAP EPS of $1.10, beating the consensus by $0.12. The company’s revenue presented a 107.7% year-over-year growth at $67.7 billion. Since the beginning of the year, Exxon Mobil Corporation (NYSE: XOM) delivered a 31.4% return to shareholders.
Of the 873 hedge funds tracked by Insider Monkey, 68 hedge funds have positions in Exxon Mobil Corporation (NYSE: XOM) as of Q2 2021. The total value of these stakes is over $3.69 billion. The number of hedge funds is compared to 65 funds in the previous quarter.
Harding Loevner released its Q1 2021 investor letter and mentioned Exxon Mobil Corporation (NYSE: XOM) in it. Here is what the firm has to say:
“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 look at 10 Best Solar Energy Stocks To Buy Now and 11 Best Clean Energy Stocks To Buy
