5 Best Oil and Energy Stocks To Buy Now

1. Diamondback Energy, Inc. (NASDAQ: FANG)

Number of Hedge Fund Holders: 34

Diamondback Energy is one of the biggest energy companies in the U.S. It ranks 1st on the list of 10 best oil and energy stocks to buy now. The company has 1,316 million barrels of oil equivalent of estimated proved reserves. The stock has gained 2013% over the last 12 months.

According to our database, the number of FANG’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 34 hedge funds that hold a position in FANG compared to 23 funds in the third quarter. The biggest stakeholder of the company is Harris Associates, with 3.28 million shares, worth $158.8 million.

Miller Value Partners, in their Q4 2020 investor letter, said Diamondback Energy, Inc. (NASDAQ: FANG) was added in their portfolio in the fourth quarter of 2020. Here is what Miller Value Partners has to say about Diamondback Energy, Inc. in their Q4 2020 investor letter:

“We also bought Diamondback Energy. For the first time in decades, we find energy to be quite attractive. Companies are finally focusing on cash flow and returns. Diamondback is a low-cost shale producer that screened well on a number of metrics we pay attention to (dividend yield, free cash flow yield, discounted cash flow, and insider buying). They recently added ROIC to their management incentive compensation. They plan to continue to pay down debt and maintain the dividend. The company is obviously levered to increasing oil prices.”

You can also take a peek at Billionaire Jim Simons’ Top 10 Stock Picks and Billionaire Steve Cohen’s Top 10 Stock Picks.

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