In this article, we will be taking a look at 5 stock picks to beat the market slump. To read our detailed analysis of these stocks and current market conditions, you can go directly to see the 10 Stock Picks to Beat the Market Slump.
5. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 53
Year-to-Date Price Gains: 51.53%
Enphase Energy, Inc. (NASDAQ:ENPH) is an information technology company working to design, develop, manufacture, and sell home energy solutions for the solar photovoltaic industry in the US and internationally. The company provides semiconductor-based microinverters. It also offers AC battery storage systems.
Sophie Karp at KeyBanc raised her price target on shares of Enphase Energy, Inc. (NASDAQ:ENPH) on August 11, from $230 to $363. The analyst also reiterated an Overweight rating on the shares.
Enphase Energy, Inc. (NASDAQ:ENPH) has had an average EPS growth of 65% over the last three quarters, with its earnings in the second quarter also coming in high. It had a second-quarter EPS increase of 109%, bringing its EPS up to $1.07, beating estimates by $0.22. Enphase Energy, Inc.’s (NASDAQ:ENPH) revenue was $530.2 million, also beating estimates by $24.79 million. The company estimated that in the third quarter, its sales will be in the $590 million to $630 million range, well above consensus estimates.
Enphase Energy, Inc. (NASDAQ:ENPH) was found among the 13F holdings of 53 hedge funds in the second quarter, with a total stake value of $1.1 billion. In comparison, 57 hedge funds were long the stock in the previous quarter, with a total stake value of $749 million.
4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 57
Year-to-Date Price Gains: 26.6%
Devon Energy Corporation (NYSE:DVN) is an independent energy company based in Oklahoma City, Oklahoma. The company explores, develops, and produces oil, natural gas, and natural gas liquids in the US. It operates about 5,135 gross wells.
Mizuho’s Vincent Lovaglio holds a Buy rating on Devon Energy Corporation (NYSE:DVN) shares as of August 18. The analyst also raised his price target on the stock from $88 to $91.
The 12-month training total return for Devon Energy Corporation (NYSE:DVN) is 172.6%. The company is considered to be one of the stocks with the most momentum in the market at present. Over the next three to five years, Devon Energy Corporation’s (NYSE:DVN) EPS is expected to rise by 19.5%. The company’s one-year dividend growth rate currently stands at 318.6%.
In total, 57 hedge funds were long the stock, with a total stake value of $1.5 billion.
Investment management company GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its second quarter 2022 investor letter. Here’s what it said:
“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 59
Year-to-Date Price Gains: 21.39%
Chevron Corporation (NYSE:CVX) is an energy company working to explore, develop, produce, and transport crude oil and natural gas. The company is based in San Ramon, California.
On September 12, analyst Ryan Todd at Piper Sandler reiterated an Overweight rating on Chevron Corporation (NYSE:CVX) shares. The analyst also raised his price target on the stock from $189 to $190.
Chevron Corporation (NYSE:CVX) is a strong dividend-payer with a one-year dividend growth rate of 5.95% and a dividend yield of 3.9%. The company’s EPS is expected to rise by 13.34% over the next three to five years, and it has grown its revenue by 77.62% year over year.
Chevron Corporation (NYSE:CVX) had 59 hedge funds long its stock in the second quarter, with a total stake value of $26 billion. In comparison, 53 hedge funds were long the stock in the previous quarter, with a total stake value of $27.9 billion.
2. Antero Resources Corp (NYSE:AR)
Number of Hedge Fund Holders: 64
Year-to-Date Price Gains: 73.32%
Antero Resources Corp (NYSE:AR) is an oil and gas exploration and production company. It is based in Denver, Colorado.
Mizuho’s Vincent Lovaglio holds a Buy rating on Antero Resources Corp (NYSE:AR) shares as of August 18. The analyst also placed a $49 price target on the stock.
Antero Resources Corp’s (NYSE:AR) operating cash flow growth, year over year, saw a 67.79% increase. In the second quarter, the company’s EPS of $1.68 beat the previous quarter’s EPS of $1.15. Antero Resources Corp (NYSE:AR) brought in revenue of $2.2 billion in that quarter, also beating estimates by $385.89 million.
Antero Resources Corp (NYSE:AR) was found among the 13F holdings of 64 hedge funds in the second quarter. Their total stake value was $1.5 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Year-to-Date Price Gains: 34.95%
Exxon Mobil Corporation (NYSE:XOM) is an energy company working to explore for and produce crude oil and natural gas. The company operates in the US and internationally.
An Overweight rating was reiterated on Exxon Mobil Corporation (NYSE:XOM) shares on September 12 by analyst Ryan Todd at Piper Sandler. The analyst also placed a $108 price target on the stock.
Exxon Mobil Corporation (NYSE:XOM) has risen 47% from the start of 2022 till September. The company’s earnings also soared by 276% in the second quarter, while its sales went up by 70%.
Exxon Mobil Corporation (NYSE:XOM) had 72 hedge funds long its stock in the second quarter. Their total stake value was $7.4 billion.
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