5 Best Oil Stocks To Buy According To Hedge Funds

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1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 68   

Exxon Mobil Corporation (NYSE:XOM) is ranked first on our list of 10 best oil stocks to buy according to hedge funds. The firm operates as an integrated oil and gas company and is headquartered in Texas. 

On July 23, investment advisory Piper Sandler reiterated a Neutral rating on Exxon Mobil Corporation (NYSE: XOM) stock and raised the price target to $69 from $63, noting that crude oil “tightness” was adding momentum to the free cash flow outlooks for the integrated oil firms.

At the end of the second quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Exxon Mobil Corporation (NYSE:XOM), up from 65 in the preceding quarter worth $2.7 billion. 

In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“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 peek at 10 Best Stocks Under $15 According to Billionaire Michael Price and Jacob Rothschild’s RIT Capital Partners is Selling These 10 Stocks.

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