In this article, we discuss the 5 best gas stocks to buy now. If you want to read our detailed analysis of the gas industry, go directly to the 10 Best Gas Stocks To Buy Now.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 50
Devon Energy Corporation (NYSE:DVN) is an American energy, oil, and natural gas corporation focused on hydrocarbon exploration. Devon Energy Corporation (NYSE:DVN)’s operational plants are located in the Delaware Basin, Eagle Ford, Anadarko Basin, Powder River Basin and Williston Basin.
Piper Sandler analyst Mark Lear kept an Overweight rating on Devon Energy Corporation (NYSE:DVN) on October 21, with a $54 price target, up from $38. The analyst stated that the gas industry is set to reduce capex and execute maintenance budgets in 2022, which would bring back the investors to the sectors after higher than expected commodity prices.
Jonathan Dawson’s Southport Management is the leading stakeholder in Devon Energy Corporation (NYSE:DVN), with stakes worth $1.2 billion. Overall, 50 hedge funds were long Devon Energy Corporation (NYSE:DVN) at the end of June, down from 52 in Q1.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation in their Q4 2020 investor letter:
“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 a multinational American hydrocarbon exploration company, with operations in 17 countries and production units in the United States, Norway, Canada, Australia, Malaysia, Libya, China, and Qatar. ConocoPhillips (NYSE:COP) made the largest oil discovery in 2020, and produces petroleum, natural gas, natural gas liquids, and bitumen.
At the end of the second quarter, 50 hedge funds in Insider Monkey’s database were long ConocoPhillips (NYSE:COP), down from 51 in the previous quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder in ConocoPhillips (NYSE:COP).
Here is what ClearBridge Investments has to say about ConocoPhillips in its Q1 2021 investor letter:
“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, which is also the second largest oil company in America. Chevron Corporation (NYSE:CVX) serves customers and markets across 180 countries, and is one of the direct successors of John Rockefeller’s Standard Oil. Chevron Corporation (NYSE:CVX)’s main operations include manufacturing and selling gasoline, natural gas, lubricants, fuels, and petrochemicals. It is one of the top gas stocks to buy now.
At the end of Q2, 50 hedge funds monitored by Insider Monkey held stakes in Chevron Corporation (NYSE:CVX), up from 41 in Q1.
On July 30, Chevron Corporation (NYSE:CVX) reported earnings for the second quarter. The EPS was $.171, $0.11 more than analysts’ had estimated. The revenue also exceeded forecasts by $1.15 billion, at $37.60 billion.
Truist analyst Neal Dingmann kept a Buy rating on Chevron Corporation (NYSE:CVX) on October 7, with a price target of $150, up from $145.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its Q1 2021 investor letter. Here is what they 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.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 57
Occidental Petroleum Corporation (NYSE:OXY) is yet another American hydrocarbon exploration company, with operations in the United States, the Middle East, and Columbia. The company also manufactures petrochemicals in the US, Canada, and Chile. Of its enormous gas reserves as of 2020, 30% produce natural gas, 51% petroleum, and 19% natural gas liquids. Occidental Petroleum Corporation (NYSE:OXY) is traded as a S&P 500 Component, and is one of the best gas stocks, with strong fundamentals and popular among hedge funds.
At the end of June, 57 hedge funds were long Occidental Petroleum Corporation (NYSE:OXY), up from 52 in Q1.
Truist analyst Neal Dingmann upgraded Occidental Petroleum Corporation (NYSE:OXY)’s rating from Hold to Buy, with a price target of $50, up from $35 on October 18. He stated that Occidental Petroleum Corporation (NYSE:OXY) was set to experience record free cash flow from asset monetization, which would allow the company to return to 2020 level dividends soon.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 68
Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and gas corporation, with its headquarters in Texas. The company was formed after the merger of Exxon and Mobil, descendants of John Rockefeller’s Standard Oil, in 1999. It is one of the leading Big Oil companies, dealing in crude oil, oil products, natural gas, petrochemicals, and power generation.
Out of the 873 hedge funds tracked by Insider Monkey, 68 funds were bullish on Exxon Mobil Corporation (NYSE:XOM) at the end of Q2, up from 65 in the first quarter. Some of the firm’s biggest and most prominent stakeholders are The Vanguard Group, BlackRock, and the State Street Corporation.
Lucas Herrmann, an analyst from Exane BNP Paribas, downgraded Exxon Mobil Corporation (NYSE:XOM) from Neutral to Underperform with a price target of $60 on October 11.
You can also take a look at 11 Best Dividend Aristocrats with over 3% Yield and 11 Best Growth Stocks To Buy According To Hedge Funds.
