7 Best Beaten Down Stocks to Invest In

4. Chord Energy Corp (NASDAQ:CHRD)

52 Week Range: $145.35 – $190.23

Current Share Price: $148.43

Number of Hedge Fund Holders: 56

Market Capitalization as of September 3: $9.18 Billion

Chord Energy Corp (NASDAQ:CHRD) is an energy company specializing in exploring and producing crude oil, natural gas, and natural gas liquids within the Williston Basin. It acquires, explores, and produces crude oil, natural gas, and liquids in the Williston Basin.

While Chord Energy Corp (NASDAQ:CHRD) has come under pressure, it is one of the best beaten-down stocks for income-focused investors. The company boasts a high trailing yield of 7.55%, paying 53% of its profit through dividends. Additionally, the company allocates more than 75% of its free cash flow to dividends and buybacks, affirming its commitment to returning optimum value to shareholders.

In addition to returning value to shareholders, Chord Energy Corp (NASDAQ:CHRD) has also been strengthening its business empire as it looks to bolster its revenue streams. It has already completed the acquisition of Enerplus, strengthening its presence in the Bakken region. While the merger is expected to deliver increased annual synergies, it should allow the company to generate more free cash flow that it can use to distribute to shareholders.

The company delivered solid second-quarter results with adjusted EBITDA of $567.9 million and adjusted free cash flow of $216 million. It returned 75% of the free cash flow at $197 million and repurchased shares worth $61.77 million. After pulling back significantly close to its 52-week low, the stock trades at a discount with a price-to-earnings multiple of 7.

As of the end of the second quarter of 2024, 56 hedge funds out of the 912 funds tracked by Insider Monkey had stakes in Chord Energy Corp (NASDAQ:CHRD). The most significant stake in Chord Energy Corp (NASDAQ:CHRD) is owned by Michael Rockefeller and Karl Kroeker’s Woodline Partners, which had a $126.47 million stake in Chord Energy Corp (NASDAQ:CHRD).

Madison Small Cap Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its first quarter 2024 investor letter:

“Our Energy underweight was also a slight drag, although we are optimistic about our singular investment in this sector with Chord Energy Corporation (NASDAQ:CHRD). During Q1 the company announced a strategic combination with Canadian-based Enerplus Corporation (TSX: ERF). Enerplus is one of, if not the best remaining assets in the Bakken and we are very constructive on the financial and strategic merits of this transformational deal. CHRD will become the largest operator in the Bakken, representing about 12% of the basin’s production. With a solid balance sheet post deal, CHRD will now be in the enviable position of either the basin’s main consolidator or most strategic asset as a target for larger E&P companies.”