Diamond Hill Capital Stock Portfolio: Top 10 Stock Picks

5. ConocoPhillips (NYSE:COP)

Diamond Hill Capital’s Stake Value: $633.5 million

Number of Hedge Fund Holders: 86

ConocoPhillips (NYSE:COP) is a US-based independent exploration and production firm. UBS analysts maintained the “Buy” rating on the company’s stock with a constant price objective of $137.00. The analysis demonstrates that the company is the most favorably positioned Large Cap Oil Exploration & Production (E&P) company for the years to come. The optimism for ConocoPhillips (NYSE:COP) is backed by 4 principal factors that set the company apart from its competitors. These include its depth of resources in North America, healthy balance sheet, attractive shareholder return profile, and extensive backlog of long-cycle projects. Notably, these projects are expected to fuel tangible cash flow growth.

Elsewhere, JPMorgan reiterated an “Overweight” rating on the company’s stock, setting the price objective of $127.00. The analysts have noted ConocoPhillips (NYSE:COP)’s defensive nature of its portfolio, featuring a healthy balance sheet, low sustaining capital expenditures, as well as a low-cost resource base. In the context of the mixed broader macroeconomic environment, the firm opines that E&P companies possessing healthy defensive characteristics remain well-placed to navigate uncertainty. For 2025, ConocoPhillips (NYSE:COP) provided production guidance of 2.34 – 2.38 million barrels of oil equivalent per day (MMBOED), including the impacts of 20 MBOED from planned turnarounds.