We recently compiled a list of the 10 Best Gas Stocks to Buy According to Billionaires. In this article, we are going to take a look at where ConocoPhillips (NYSE:COP) stands against the other gas stocks.
Energy stocks have performed strongly in 2025 so far and have outpaced the broader markets. Investors seem to be shifting from the tech play in favor of companies with high free cash flow that can pay dividends and overcome economic downturns.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 Best Stocks Under $3 to Buy Now.
Rob Thummel, senior portfolio manager at Tortoise Capital, highlighted the energy sector’s compelling investment characteristics, such as high free cash flow yields, dividend growth, and stock buybacks.
Simon Lack, portfolio manager at Catalyst Energy Infrastructure Fund, believes that tariffs are unlikely to impact US energy exports significantly. Additionally, a favorable regulatory environment under the Trump administration is expected to help lower production costs for energy companies. Lack noted that President Trump has signaled willingness to reconsider tariffs if other countries purchase more US oil and gas. This reinforces a positive outlook for the sector.
Natural gas prices have surged by over 30% in 2025. This makes natural gas the standout performer in the energy sector. Natural gas companies are benefiting from the bullish price movements.
Methodology
To compile our list of the 10 best gas stocks to buy according to billionaires, we looked for the largest gas companies. We also reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gas stocks. Next, we focused on the top 10 gas stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gas stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An oil rig in the midst of extracting oil and natural gas from the earth, illuminated by the setting sun.
ConocoPhillips (NYSE:COP)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 86
ConocoPhillips (NYSE:COP) is an American multinational energy corporation and one of the world’s largest independent exploration & production (E&P) companies based on oil and natural gas production and proved reserves. The company has a globally diversified asset portfolio with operations and activities in 14 countries. ConocoPhillips (NYSE:COP) ranks among the best gas stocks to buy.
On March 20, UBS analysts reaffirmed a “Buy” rating on ConocoPhillips (NYSE:COP) with a price target of $137. The firm’s analysis highlighted 4 key strengths that make the company the most favorably positioned large-cap oil exploration and production company for the next five years. First, ConocoPhillips (NYSE:COP) has extensive resource depth in North America. Second, the company’s strong financial health, which is reflected in a moderate debt-to-equity ratio of 0.39. Third, ConocoPhillips (NYSE:COP) offers attractive shareholder returns and has an impressive 55-year streak of consecutive dividend payments. Lastly, the company’s extensive backlog of long-cycle projects is expected to drive significant cash flow growth.
UBS projects a compound annual growth rate (CAGR) of 12% in cash flow per share (CFPS) and 20% in free cash flow per share (FCFPS) from 2025 to 2030. This projection is based on the assumption of a steady West Texas Intermediate (WTI) crude oil price of $70. UBS also noted that ConocoPhillips’ (NYSE:COP) projects are expected to start coming online next year and capital expenditures will decline from peak levels.
Overall, COP ranks 3rd on our list of the best gas stocks to buy according to billionaires. While we acknowledge the potential of COP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
