In this article, we discuss the 5 best oil stocks to buy amid post-COVID demand boom and price volatility. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility.
5. Chevron Corporation (NYSE: CVX)
Number of Hedge Fund Holders: 41
Chevron Corporation (NYSE: CVX) is a California-based firm with interests in energy, chemicals, and petroleum products. It is placed fifth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The stock has offered investors returns exceeding 23% over the course of the past year.
On June 30, news agency Reuters reported that Chevron Corporation (NYSE: CVX) was considering selling two major oil-related assets worth close to $1 billion. The proceeds will be used to fund the energy transition of the firm away from fossil fuels.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in Chevron Corporation (NYSE: CVX), down from 50 in the preceding quarter worth $5.3 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE: CVX) was one of them. Here is what the fund 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.”
4. PDC Energy, Inc. (NASDAQ: PDCE)
Number of Hedge Fund Holders: 24
PDC Energy, Inc. (NASDAQ: PDCE) is an energy firm that operates from Colorado. It is ranked fourth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have offered investors returns exceeding 236% over the course of the past year.
PDC Energy, Inc. (NASDAQ: PDCE) is a solid option for those looking to retire early as it pays a healthy and regular dividend. On May 27, the firm declared a quarterly dividend of $0.12 per share.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in PDC Energy, Inc. (NASDAQ: PDCE) with 2.5 million shares worth more than $87 million.
3. Energy Transfer LP (NYSE: ET-PD)
Number of Hedge Fund Holders: 25
Energy Transfer LP (NYSE: ET-PD) is a company headquartered in Texas that provides energy-related services. It is placed third on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The stock has returned 62% to investors in the past twelve months.
On May 12, Energy Transfer LP (NYSE: ET-PD) founder Kelcy Warren said that the firm was considering an investment in the chemicals and plastic business in order to diversify. The comments were made at a conference in North Dakota.
Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Appaloosa Management LP is a leading shareholder in Energy Transfer LP (NYSE: ET-PD) with 22.8 million shares worth more than $175 million.
In its Q1 2021 investor letter, Miller/Howard Investments highlighted a few stocks and Energy Transfer LP (NYSE: ET-PD) was one of them. Here is what the fund said:
“Another upweight was Energy Transfer (ET), which was selling at a discount on EV/ EBITDA compared with the portfolio and had an attractive +20% FCF yield. Further, ET’s ample FCF should exceed the current distribution even if the Dakota Access Pipeline were to be shut down.”
2. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) is an energy firm that explores for and produces oil and natural gas. It is ranked second on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have returned 44% to investors in the past year.
On July 2, Exxon Mobil Corporation (NYSE: XOM) CEO Darren Woods made a statement backing a new carbon tax that he said was essential to reach net zero emissions in the fight against climate change.
At the end of the first quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Exxon Mobil Corporation (NYSE: XOM), up from 63 in the preceding quarter worth $2.2 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.”
1. Renewable Energy Group, Inc. (NASDAQ: REGI)
Number of Hedge Fund Holders: 21
Renewable Energy Group, Inc. (NASDAQ: REGI) is an energy firm that converts natural fats, oils, and greases into advanced biofuels. It is placed first on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The stock has returned 156% to investors in the past year.
Renewable Energy Group, Inc. (NASDAQ: REGI) was one of the firms that benefited from the nearly $700 million in coronavirus relief aid from the US government for biofuel companies working in the United States.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Schonfeld Strategic Advisors is a leading shareholder in Renewable Energy Group, Inc. (NASDAQ: REGI) with 501,100 shares worth more than $33 million.
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