5 Oil and Gas Stocks to Buy According to Billionaire Steve Cohen

1. ConocoPhillips (NYSE:COP)

Point72 Asset Management’s Stake Value: $198.11 million

Percentage of Point72 Asset Management’s 13F Portfolio: 0.78%

Number of Hedge Fund Holders: 67

ConocoPhillips (NYSE:COP) is the largest energy stock in Steve Cohen’s Q1 portfolio. The billionaire increased his exposure to the firm by 231% during the first quarter.

With significant operations related to the production, transportation and marketing of crude oil, natural gas, and LNG around the world, ConocoPhillips (NYSE:COP) is a dominant name in the energy sector. As of July 6, it has risen 37.24% in the last 12 months, and 11.93% in the year to date. With a 8.56 P/E (price to earnings) ratio, COP is also a significantly undervalued stock.

67 hedge funds reported ownership of positions in ConocoPhillips (NYSE:COP) at the close of the first quarter. This shows growing investor confidence in the company over the previous quarter, where 56 hedge funds were long COP shares. Diamond Hill Capital was the firm’s largest Q1 shareholder, with a new $703 million position. Fisher Asset Management was also a significant stakeholder of ConocoPhillips (NYSE:COP) with a stake worth roughly $651 million.

On May 31, Mizuho analyst Vincent Lovaglio raised the firm’s price target on ConocoPhillips (NYSE:COP) to $157 from $150 and reiterated a ‘Buy’ rating on the shares. Soaring global energy commodity prices have driven significant gains for energy exploration and production companies in the United States, and the analyst expects this to remain the case moving forward.

In its Q1 2022 investor letter, ClearBridge Investments discussed the performance of ConocoPhillips (NYSE:COP), stating:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

You can also take a look at 10 Most Anticipated IPOs of 2022 and 10 Best Dividend Stocks for Passive Income.

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