5 Hot Oil Stocks To Buy Now

In this article, we will be taking a look at 5 hot oil stocks to buy now. To read our detailed analysis of the energy sector, you can go directly to see the 11 Hot Oil Stocks To Buy Now.

5. Transocean Ltd (NYSE:RIG)

Average 3-Month Volume as of January 9: 15.2 million

Number of Hedge Fund Holders: 47

As of November 28, Doug Becker, an analyst at Capital One, holds an Overweight rating and an $8 price target on shares of Transocean Ltd (NYSE:RIG).

Transocean Ltd (NYSE:RIG) is an oil and gas drilling company based in Steinhausen, Switzerland. The company provides offshore contract drilling services for oil and gas wells across the globe. It contracts its mobile offshore drilling rigs, equipment, and crews to drill oil and gas wells.

A total of 47 hedge funds were long Transocean Ltd (NYSE:RIG) in the third quarter, with a total stake value of $1.2 billion.

4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Average 3-Month Volume as of January 9: 16.9 million

Number of Hedge Fund Holders: 36

Based in Rio De Janeiro, Brazil, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is an integrated oil and gas company. It explores, produces, and sells oil and gas in Brazil and internationally. The company operates through its Exploration and Production, Refining, Transportation and Marketing, and Gas and Power segments.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) was spotted in the 13F holdings of 36 hedge funds in the third quarter, with a total stake value of $4.4 billion.

Here’s what Fairlight Capital said about Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) in its third-quarter 2023 investor letter:

“Throughout the year, we have reviewed thousands of companies, including many in the oil sector. While we are generally cautious about commodity-based businesses where the company lacks control over the price of what it produces, the valuations in several cases have reached extremely compelling levels. For example, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) and Ecopetrol (EC). Petrobras has distributed dividends of over $2.30 paid this year3 , while Ecopetrol has traded as cheaply as the $9-$10 range (close to our purchase price) and is paying approximately $2.50 in dividends this year.

We factor in the potential cost of FX movements over time, but even under the most pessimistic scenarios the investments should work out well. We initially came across these ideas while looking at South American stocks in general. We saw that many market commentators had expressed concerns that Ecopetrol’s dividends might be halted, especially following the election of Gustavo Petro as president of Colombia in June 2022. Similarly, there have been reservations about the sustainability of Petrobras’s dividend. However, the government owns substantial controlling stakes in these companies and is also a recipient of their dividends. For Ecopetrol, the Colombian government owes money to Ecopetrol due to the Fuel Price Stabilization Fund (FEPC). This fund aims to stabilize fuel prices for Colombian consumers. It bridges the gap between international and national Colombian consumer prices by compensating producers and importers for this price difference. The primary goal is to cushion the impact of global oil price fluctuations on the Colombian market. This is achieved either through cash payment or by forgoing dividend payments due from the government’s stake in these companies. In Ecopetrol’s case, the dividends paid (or those that would be paid to the government) are applied against the outstanding balances…” (Click here to read the full text)

3. Southwestern Energy Company (NYSE:SWN)

Average 3-Month Volume as of January 9: 20.4 million

Number of Hedge Fund Holders: 44

Our hedge fund data for the third quarter shows 44 hedge funds long Southwestern Energy Company (NYSE:SWN). Their total stake value in the company was $932 million.

Paul Diamond, an analyst at Citigroup, upgraded shares of Southwestern Energy Company (NYSE:SWN) from Neutral to Buy on December 11. The analyst also announced a price target of $8 on the stock.

Southwestern Energy Company (NYSE:SWN) is an oil and gas exploration and production company. It operates through its Exploration and Production, and Marketing segments. The company is based in Spring, Texas.

2. Exxon Mobil Corporation (NYSE:XOM)

Average 3-Month Volume as of January 9: 22.1 million

Number of Hedge Fund Holders: 79

Based in Spring, Texas, Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas company. It explores and produces crude oil and natural gas internationally.

On January 9, Peter Low, an analyst at Redburn Atlantic, upgraded shares of Exxon Mobil Corporation (NYSE:XOM) from Neutral to Buy. The analyst also raised his price target on the stock from $116 to $119.

Exxon Mobil Corporation (NYSE:XOM) was seen in the portfolios of 79 hedge funds in the third quarter, with a total stake value of $4.5 billion.

1. Tellurian Inc. (NASDAQ:TELL)

Average 3-Month Volume as of January 9: 38.03 million

Number of Hedge Fund Holders: 10

In total, 10 hedge funds were long Tellurian Inc. (NASDAQ:TELL) in the third quarter. Their total stake value was $26.2 million.

Based in Houston, Texas, Tellurian Inc. (NASDAQ:TELL) is a company engaged in the natural gas business. It operates worldwide and is developing a portfolio of natural gas production, liquefied natural gas (LNG) marketing, and infrastructure assets. The company’s assets include an approximately 27.6 million tons per year LNG export facility alongside its associated pipeline.

See also Top 30 Oil Producing Countries in 2023 and 25 Countries that Import the Most Oil in 2023.