Top 5 Oil and Gas Stocks To Invest In According to Hedge Funds

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 71

Occidental Petroleum Corporation (NYSE:OXY) is a Texan oil and gas company and is one of the best-undervalued energy stocks to buy according to analysts. The company operates in the USA, Canada, the Middle East, and Chile.

Occidental Petroleum Corporation (NYSE:OXY) was held by 71 hedge funds in the fourth quarter of 2022. Berkshire Hathaway was the most prominent shareholder of the company in the quarter with shares worth over $12.24 billion. On top of that, as we previously mentioned that Berkshire Hathaway gained approval from the Federal Energy Regulatory Commission in August 2022 to buy up to 50% of Occidental Petroleum Corporation (NYSE:OXY)’s stock, the firm has been aggressively buying the company’s shares.

On April 13, Truist analyst Neal Dingmann reaffirmed a Buy rating on Occidental Petroleum Corporation (NYSE:OXY)’s shares and raised his price target to $86 from $84. On the same day, Citi analyst Scott Gruber also raised his price target on the firm to $66 from $63 and maintained a Neutral rating on the company shares.

Here is what Smead Capital Management had to say about Occidental Petroleum Corporation in its Q3 2022 investor letter:

“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”