5 Most Undervalued Large Cap Stocks To Buy According To Hedge Funds

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 74

P/E Ratio as of January 24: 5.37

Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company engaged in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. On January 6, BofA analyst Doug Leggate upgraded Occidental Petroleum Corporation (NYSE:OXY) to Buy from Neutral with a price target of $80, down from $82. He noted that while the potential for gains is not as high as it was in 2020, the new price target values the shares at a premium compared to similar companies. He also views Occidental Petroleum Corporation (NYSE:OXY) as more stable than its peers, as the company’s strategies for managing debt and preferred equity make it less vulnerable to market fluctuations and allows for more efficient transfer of value.

According to Insider Monkey’s Q3 data, 74 hedge funds were bullish on Occidental Petroleum Corporation (NYSE:OXY), compared to 66 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 194.35 million shares worth $12 billion. 

Here is what Smead Value Fund has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter include Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”