5 Cheap Oil Stocks to Buy Today

2. Kinder Morgan, Inc. (NYSE:KMI)

Number Of Hedge Fund Holders: 40

Share Price as of July 28: $18.04

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America that specializes in owning and controlling oil and gas pipelines and terminals. It operates through four business segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2.

Earlier this April, Wells Fargo analyst Michael Blum upgraded Kinder Morgan, Inc. (NYSE:KMI) to Equal Weight from Underweight with a price target of $21, up from $19, to reflect higher assumed multiples for refined products assets in his sum-of-the-parts valuation. Although the analyst still views Kinder Morgan, Inc. (NYSE:KMI) as a defensive midstream company, he believes the company could benefit from a number of tailwinds on account of surging inflation, oil prices hovering around $100/Bbl, and robust demand for natural gas/LNG.

On July 20, Kinder Morgan, Inc. (NYSE:KMI) announced its financial results for the second fiscal quarter of 2022, posting an EPS of $0.27, in-line with the estimates. The $5.15 billion revenue surpassed market consensus forecasts by $1.27 billion.

At the end of Q1 2022, 40 hedge funds were bullish on Kinder Morgan, Inc. (NYSE:KMI) with stakes worth $1.34 billion. This is compared to 39 positions in the previous quarter with stakes worth $998.85 million. The hedge fund sentiment for the stock is positive.