In this article, we will look at the top 5 stocks that make up anti-ESG investor Vivek Ramaswamy’s new energy ETF. If you want to read about Vivek Ramaswamy and his thoughts on fossil fuels to generate energy, you can read “Anti ESG” Investor Vivek Ramaswamy’s New ETF: Top 10 Stock Picks.
5. Occidental Petroleum Corporation (NYSE:OXY)
Percentage of Strive U.S. Energy ETF’s Portfolio: 3.3%
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY) is a leading oil and gas exploration company that operates in the United States, the Middle East, Africa, and Latin America. The company operates through three business divisions: Oil and Gas, Chemical, and Midstream and Marketing. As of September 8, Occidental Petroleum Corporation (NYSE:OXY) has surged 161.54% year to date.
Wall Street is bullish on Occidental Petroleum Corporation (NYSE:OXY) and sees potential upside to the stock. On August 31, Barclays analyst Jeanine Wai revised her price target on Occidental Petroleum Corporation (NYSE:OXY) to $75 from $79 and reiterated a buy-side Overweight rating on the shares. On September 6, Morgan Stanley analyst Devin McDermott raised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $76 from $70 and maintained an Equal Weight rating on the shares.
Occidental Petroleum Corporation (NYSE:OXY) is trading at bargain levels. As of September 8, the stock has a trailing twelve-month PE ratio of 6.39 and is offering a forward dividend yield of 0.70%, which the company supports with free cash flows of $11.47 billion.
At the end of Q2 2022, 66 hedge funds were bullish on Occidental Petroleum Corporation (NYSE:OXY) and held stakes worth $13.75 billion in the company. This is compared to 67 hedge funds in Q1 2022 with stakes worth $12.6 billion.
Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY) in its second-quarter 2022 investor letter, here is what the firm had to say:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
4. EOG Resources, Inc. (NYSE:EOG)
Percentage of Strive U.S. Energy ETF’s Portfolio: 3.5%
Number of Hedge Fund Holders: 43
EOG Resources, Inc. (NYSE:EOG) explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids, primarily in the United States. On August 4, EOG Resources, Inc. (NYSE:EOG) declared a special cash dividend of $1.50 per share of the company’s common stock. The dividend is payable on September 29 to investors of record at the close of business on September 15. As of September 8, EOG Resources, Inc. (NYSE:EOG) is offering a forward dividend yield of 2.47% and has free cash flows of $3.89 billion.
On August 26, MKM Partners analyst Leo Mariani raised his price target on EOG Resources, Inc. (NYSE:EOG) to $130 from $122 and reiterated a Buy rating on the shares.
EOG Resources, Inc. (NYSE:EOG) is on the rise and is still trading cheaply relative to earnings. As of September 8, EOG Resources, Inc. (NYSE:EOG) has gained 76.41% over the past twelve months and has a trailing twelve-month PE ratio of 12.17.
At the close of the second quarter of 2022, 43 hedge funds held stakes in EOG Resources, Inc. (NYSE:EOG). The total value of these stakes amounted to $933 million.
Here is what Oakmark Funds had to say about EOG Resources, Inc. (NYSE:EOG) in its “Oakmark Select Fund” first-quarter 2022 investor letter:
“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
3. ConocoPhillips (NYSE:COP)
Percentage of Strive U.S. Energy ETF’s Portfolio: 6.8%
Number of Hedge Fund Holders: 71
On August 4, ConocoPhillips (NYSE:COP) announced earnings for the second quarter of fiscal 2022. The company reported earnings per share of $3.91 and outperformed expectations by $0.06. The company’s revenue for the quarter amounted to $22 billion, up 115% year over year, and beat Wall Street estimates by $2.3 billion. As of September 8, ConocoPhillips (NYSE:COP) has returned 96.7% to investors over the past twelve months.
On August 26, MKM Partners analyst Leo Mariani raised his price target on ConocoPhillips (NYSE:COP) to $118 from $110 and maintained a Buy rating on the shares. On August 31, Barclays analyst Jeanine Wai raised her price target on ConocoPhillips (NYSE:COP) to $153 from $142 and reiterated a buy-side Overweight rating on the shares.
As of September 8, ConocoPhillips (NYSE:COP) has a trailing twelve-month PE ratio of 8.98 and is offering a forward dividend yield of 1.80%, which the company backs with free cash flows of $15.65 billion.
At the end of Q2 2022, 71 hedge funds were long ConocoPhillips (NYSE:COP) and held stakes worth $2.42 billion in the company. This is compared to 67 positions in the preceding quarter with stakes worth $2.58 billion.
Investment management company, Diamond Hill Capital, mentioned ConocoPhillips (NYSE:COP) in its first-quarter 2022 investor letter, here is what the firm had to say:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
2. Chevron Corporation (NYSE:CVX)
Percentage of Strive U.S. Energy ETF’s Portfolio: 16.5%
Number of Hedge Fund Holders: 59
Wall Street is bullish on Chevron Corporation (NYSE:CVX). On August 4, Societe Generale analyst Irene Himona raised her price target on Chevron Corporation (NYSE:CVX) to $190 from $175 and upgraded the stock to Buy from Hold. On September 6, Morgan Stanley analyst Devin McDermott raised his price target on Chevron Corporation (NYSE:CVX) to $193 from $187 and maintained an Equal Weight rating on the shares. As of September 8, the stock has surged 61.49% over the past twelve months.
Chevron Corporation (NYSE:CVX) is another cash-rich energy company that is currently trading at bargain levels. As of September 8, the stock is trading at a PE ratio of 10.38 and is offering a forward dividend yield of 3.66%, which the company supports with trailing twelve-month free cash flows of $30.2 billion.
At the close of the second quarter of 2022, 59 hedge funds were eager on Chevron Corporation (NYSE:CVX) and held stakes worth $26 billion in the company. This is compared to 53 hedge funds in the previous quarter with stakes worth $27.9 billion.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its first-quarter 2022 investor letter, here is what the investment management firm had to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
1. Exxon Mobil Corporation (NYSE:XOM)
Percentage of Strive U.S. Energy ETF’s Portfolio: 22%
Number of Hedge Fund Holders: 72
At the end of Q2 2022, 72 hedge funds disclosed ownership of stakes in Exxon Mobil Corporation (NYSE:XOM). The total value of these stakes amounted to $7.40 billion. As of September 8, Exxon Mobil Corporation (NYSE:XOM) has returned 75.49% to investors over the past twelve months.
On July 29, Exxon Mobil Corporation (NYSE:XOM) announced market-beating earnings for the second quarter of fiscal 2022. The company generated a revenue of $115.7 billion, up 70.7% year over year, and beat expectations by $3.62 billion. The company reported earnings per share of $4.14 and outperformed estimates by $0.29.
On September 7, Morgan Stanley analyst Devin McDermott raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $113 from $107 and reiterated a buy-side Overweight rating on the shares.
As of September 8, Exxon Mobil Corporation (NYSE:XOM) has a trailing twelve-month PE ratio of 10.39 and is offering a forward dividend yield of 3.74%, which the company supports with free cash flows of $49.2 billion.
Here is what First Eagle Investments had to say about Exxon Mobil Corporation (NYSE:XOM) in its second-quarter 2022 investor letter:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
You can also take a look at 15 Best Energy Stocks to Buy Now and 10 Best Oil Stocks To Buy Now.
