5 Best Undervalued Energy Stocks to Buy

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 74

PE Ratio as of December 2: 5.66

Wall Street is positive on Occidental Petroleum Corporation (NYSE:OXY). On November 14, Wells Fargo analyst Roger Read upgraded Occidental Petroleum Corporation (NYSE:OXY) to Equal Weight from Underweight and raised his price target to $74 from $59. This November, Citi analyst Scott Gruber raised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $75 from $67 and maintained a Neutral rating on the shares.

On November 8, Occidental Petroleum Corporation (NYSE:OXY) reported earnings for the third quarter of fiscal 2022. The company reported an EPS of $2.44 and generated a revenue of $9.50 billion, up 39.41% year over year and ahead of Wall Street consensus by $452.55 million. As of December 2, the stock has returned 119.61% to investors year to date and is trading at a PE multiple of 5x. Occidental Petroleum Corporation (NYSE:OXY) is one of the best undervalued energy stocks to buy now.

At the close of Q3 2022, 74 hedge funds held stakes in Occidental Petroleum Corporation (NYSE:OXY) worth $15.6 billion. This is compared to 66 hedge funds in the previous quarter with positions worth $13.75 billion. The hedge fund sentiment for the stock is positive. As of September 30, Berkshire Hathaway is the dominant investor in the company and has a position worth $11.9 billion.