Ken Griffin Stock Portfolio: 10 Stocks to Buy

1. Hess Corporation (NYSE:HES)

Citadel Investment Group’s Stake: $969.5 million

Hess Corporation (NYSE:HES) is a leading exploration and production company focused on the exploration, development, production, purchase, transportation, and sale of crude oil, natural gas liquids, and natural gas. The company operates through two primary segments: Exploration and Production, and Midstream.

In its Q3 2024 earnings report, Hess Corporation (NYSE:HES) posted a net income of $498 million, slightly down from the prior year. However, adjusted net income rose to $660 million, reflecting strong growth fueled by higher production volumes, particularly in Guyana. The company reported a 17% year-over-year increase in net production, reaching 461,000 barrels of oil equivalent per day, with Guyana’s contributions driving much of this growth. While crude oil selling prices declined, the production ramp-up, especially from the third development at the Stabroek Block, bolstered overall earnings.

Piper Sandler reaffirmed its Overweight rating on Hess Corporation (NYSE:HES) with an unchanged price target of $167 at the beginning of October. Addressing investor inquiries, the firm assessed the independent value of Hess’s assets, particularly in Guyana, and the company’s overall stand-alone valuation. Piper Sandler raised its valuation of Hess’s Guyana interests from $40.6 billion to $45.6 billion, translating to an increase in per-share value from $132 to $149. The revision reflects a significant rise in discovered resources and better-than-expected productivity in Guyana, enhancing the company’s long-term growth outlook.

While we acknowledge the potential of HES, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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