1. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders as of Q4: 92
Citadel Investment Group’s Equity Stake: $1.18 Billion
An American independent energy company founded in 1933, Hess Corporation (NYSE:HES) is involved in the exploration and production of crude oil and natural gas. The company operates production facilities in key regions, including the United States, Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia. It also focuses on offshore exploration, particularly in Guyana and the U.S., strengthening its presence in major energy markets. By maintaining a diversified production portfolio, the company continues to capitalize on global oil and gas opportunities, reinforcing its position within the industry.
Hess Corporation reported strong quarterly earnings of $1.76 per share, exceeding the consensus estimate of $1.51 and improving from $1.63 per share a year ago. Accordingly, the company’s net income was $542 million in the fourth quarter of 2024, compared with net income of $413 million in the fourth quarter of 2023. This earnings beat of 16.56% marks the fourth consecutive quarter in which Hess Corporation (NYSE:HES) has outperformed expectations. Consistently outperforming earnings estimates reflects the company’s solid financial performance and operational efficiency in the oil and gas sector.
Hess Corporation (NYSE:HES) also posted revenue of $3.23 billion for Q4 2024, exceeding analyst expectations by 6.38% and growing from $3.04 billion in the same period last year. This marks another quarter of revenue growth, reinforcing Hess’s ability to capitalize on market conditions. While the stock’s future movement will depend on management’s outlook, HES has gained approximately 8.87% since the start of the year, significantly outperforming the broader market’s 1.68% decline. These strong results suggest continued momentum for the company in the near term.
Recently, Hess Corporation (NYSE:HES) announced a quarterly dividend, which was distributed on December 31, 2024, to investors who were recorded by December 16. The dividend payout stood at $0.50 per share, amounting to an annualized dividend of $2.00 with a yield of 1.34%. With a payout ratio of 22.22%, the company demonstrates financial discipline while providing shareholder value through consistent returns.
Overall, Hess Corporation (NYSE:HES) ranks first on our list of the top 10 stocks to buy according to Citadel Investment Group. While we acknowledge the potential for HES 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 HES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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