This article presents an overview of the 5 Best Oil Stocks to Buy for 2024. For a detailed overview of such stocks, read our article, 12 Best Oil Stocks to Buy for 2024.
5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Investors: 62
Texas-based energy hydrocarbon exploration company ConocoPhillips (NYSE:COP) is one of the best oil stocks to buy for 2024 according to hedge fund investors.
BMO Capital recently talked about 25 stocks that lagged in January but are expected to outperform for the rest of 2024. ConocoPhillips (NYSE:COP) was a part of this list of stocks.
Out of the 910 funds in Insider Monkey’s database, 62 hedge funds reported owning stakes in ConocoPhillips (NYSE:COP). The biggest stakeholder of ConocoPhillips (NYSE:COP) was Natixis Global Asset Management’s Harris Associates which owns a $1.5 billion stake in ConocoPhillips (NYSE:COP).
4. Schlumberger NV (NYSE:SLB)
Number of Hedge Fund Investors: 65
With a dividend yield of 2% and a PE ratio of 18 as of January 27, oilfield services company Schlumberger NV (NYSE:SLB) is a famous energy stock among hedge fund investors. At the end of the September 2023 quarter, 65 hedge fund investors in Insider Monkey’s database had stakes in Schlumberger NV (NYSE:SLB), up from 60 hedge funds in the previous quarter. This shows that hedge fund sentiment for the stock is positive.
In January, Schlumberger NV (NYSE:SLB) posted fourth quarter results. Adjusted EPS in the period came in at $0.86, beating estimates by $0.03. Revenue in the quarter jumped 13.8% year over year to $8.99 billion, surpassing estimates by $50 million.
Alger Spectra Fund made the following comment about Schlumberger Limited (NYSE:SLB) in its Q3 2023 investor letter:
“Schlumberger Limited (NYSE:SLB) provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. During the period, shares contributed to performance driven in large part by higher oil prices and strong fiscal second quarter earnings results. Within its quarterly report. the company highlighted growing momentum in international offshore markets that reflected market share gains as well as solid end market activity, leading to strong profit margins and healthy free cash flow generation, in our view.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Investors: 72
Oil giant Chevron Corporation (NYSE:CVX) has a dividend growth record of 36 consecutive years. Chevron Corporation (NYSE:CVX) is also among the companies with the biggest buyback programs. In January, Jefferies upgraded the stock to Buy from Hold with a price target of $184.
Insider Monkey’s database of 910 funds shows that 72 hedge funds had stakes in Chevron Corporation (NYSE:CVX) as of the end of the September quarter.
Ariel Focus Fund made the following comment about Chevron Corporation (NYSE:CVX) in its third 2023 investor letter:
“Also in the quarter, we initiated a position in Chevron Corporation (NYSE:CVX), the second largest integrated energy company in the U.S., operating in exploration, production and refining on a global scale. We view the company as competitively advantaged with a strong balance sheet, sustainable growth pathway and an effective management team. Going forward CVX expects improved cost efficiencies and production growth via its differentiated position in the Permian Basin and recent acquisition of Noble Energy. Additionally, management believes a combination of its new higher-margin projects along with operational improvements will drive a double-digit return of capital employed by 2027. Although oil and gas prices, which lay outside of the company’s control, ultimately dictate Chevron’s earnings and cashflow profile, the organization is laser focused on capital discipline. It is this lack of predictability, and potential fear of a global recession which presented us with an opportunity to initiate a position in this high barrier to entry producer at reasonable prices.”
2. Occidental Petroleum Corp (NYSE:OXY)
Number of Hedge Fund Investors: 75
Occidental Petroleum Corp (NYSE:OXY) is in the spotlight amid Berkshire Hathaway’s consistent amassing of the stock. Latest SEC filings show that Warren Buffett’s Berkshire now owns a 34% stake in Occidental Petroleum Corp (NYSE:OXY).
Morgan Stanley recently upgraded the stock to Overweight from Equal Weight.
1. Exxon Mobil Corp (NYSE:XOM)
Number of Hedge Fund Investors: 79
Exxon Mobil Corp (NYSE:XOM) tops our list of the best oil stocks to buy for 2024 according to hedge funds.
A total of 79 hedge funds in Insider Monkey’s database were bullish on Exxon Mobil Corp (NYSE:XOM) stock.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 13 Most Buzzing Stocks To Buy Now and the 13 Best Grocery Stocks To Buy Now.
