5 Undervalued Energy Stocks to Buy According to Hedge Funds

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

PE Ratio (as of March 7): 19.91

Chevron Corporation (NYSE:CVX) was seen in the portfolio of 53 hedge funds in the fourth quarter, which held combined shares worth $6.5 billion in the firm. This shows improving hedge fund sentiment from last quarter, where 51 hedge funds were bullish on Chevron Corporation (NYSE:CVX) shares.

Operating as an energy company worldwide, Chevron Corporation (NYSE:CVX) explores and produces crude oil, natural gas, and other commodities, and also conducts refinery operations to turn crude oil into petrochemicals and lubricants.

On March 2, BMO Capital analyst Phillip Jungwirth maintained an ‘Outperform’ rating on Chevron Corporation (NYSE:CVX) shares and raised the price target to $170 from $140. The analyst sees the firm’s higher exposure to oil and greater upstream weighting versus integrated peers as positive indicators. He pointed out that the firm’s Analyst Day highlighted its progress and commitment to higher returns for shareholders, as well as its lower carbon strategy.

Revenue for the fourth quarter came in at $48.13 billion for Chevron Corporation (NYSE:CVX), which exceeded estimates by $2.83 billion and was up 90.64% in comparison to the year-ago quarter.

Berkshire Hathaway of billionaire Warren Buffett was the top shareholder in Chevron Corporation (NYSE:CVX) at the close of the fourth quarter, with 38.24 million shares valued at $4.48 billion. Buffett increased his holding in the energy firm by 34% over the previous quarter.