Among the best energy stocks to invest in now
Recently, I’ve published a list of Best energy stock to invest in 11 people. In this article, we will introduce EOG Resources, Inc. We’ll look at where (NYSE:EOG) counters other underrated energy stocks.
On March 18th, Tortoise Capital’s senior portfolio manager, Rob Thummmel, appeared on CNBC’s “Squawk On the Street” to discuss his outlook on the energy sector. He believes natural gas is positioned to lead future growth within the energy sector. This demand for natural gas is driven by electricity and energy exports. Thummel noted that advances in AI and data centers have converged the energy and technology sector. While electricity demand drives consumption of natural gas, US energy exports can help meet global needs for low-cost and low-carbon energy. He also emphasized that the US is now emerging as the largest exporter of LNG, even if it was an LNG importer a few years ago. He expects US LNG exports will soon double over time. Thummel also hopes that Europe and other countries will prioritize energy security and diversify their sources. This ensures reliance on the US energy exports.
Thummel discussed specific investment strategies, focusing on energy infrastructure companies, as it is stable even in uncertain market conditions and has high dividend yields. He believes that the certainty provided by energy infrastructure investments in otherwise unstable markets should not be ignored. Such companies generate significant annual cash flow while maintaining disciplined financial practices.
Thummel believes the energy sector will trade historic ratings at a discounted price despite its basics. This provides a high return potential.
Using Finviz Stock Screener, I compiled a list of top energy stocks with P/E ratios under 15 as of April 10th. After that, they chose 11 most popular stocks among elite hedge funds, and analysts were bullish. Stocks were ranked in ascending order of the number of hedge funds that contain stocks in them as of the fourth quarter of 2024. Hedge fund data was sourced from Insider Monkey’s database, which tracks the movements of over 1,000 elite money managers.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (sFor more information about EE, click here).
