5 Cheap Oil Stocks Under $5

1. Chesapeake Energy Corporation (NYSE:CHK)

Finally, on the first spot among our list of 5 cheap oil stocks under $5 is Chesapeake Energy Corporation (NYSE:CHK). The company registered the most dramatic decrease in the number of investors with long positions in it, as there were 33 funds holding Chesapeake shares at the end of March, down by eight over the quarter. Among the investors tracked by us, billionaire Andreas Halvorsen‘s Viking Global held 20.20 million shares of Chesapeake Energy Corporation (NYSE:CHK) heading into the second quarter.

Chesapeake Energy Corporation (NYSE:CHK)’s stock has lost over 29% since the beginning of the year, but it’s 13% in the green over the past 12 months. As it generates most of its revenue from the production of natural gas, the company was hit hard by the decline of the commodity’s price. Nevertheless, a decline in price led to higher demand, as more power plants started to convert to natural gas from coal as a cleaner alternative. In addition, Chesapeake has managed to address its liquidity issues by selling assets and repaying debt. However, for a full comeback, Chesapeake Energy Corporation (NYSE:CHK) needs an increase in natural gas prices and/or the U.S government pushing harder to promote gas exports.

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These are the top 5 cheap oil stocks under $5, based on smart money sentiment. While these investors do conduct meticulous research when it comes to any position they take, it’s important to remember that some of them have billions of dollars at their disposal and their stakes in these companies represent only a very small percentage of that. Thus, we consider this list to be a great starting point, but recommend further research, particularly if you’re planning on making a sizable financial commitment to any of these stocks.

Disclosure: None