Kevin Hern, a Republican congressman and businessman from Oklahoma, has been actively trading in the energy sector. His recent trades (buy and sell) show a high inclination toward the oil and gas sector. As per Capitol Trades, the three offshore oil and gas drilling companies on Hern’s radar are Devon Energy Corp. (NYSE:DVN), Pioneer Natural Resources (NYSE:PXD), and NextEra Energy (NYSE:NEE).
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All these companies have significantly outperformed earnings expectations in the past three quarters, thanks to record high oil and gas prices. This sector is currently a hot topic as the Russia-Ukraine war has led to soaring energy prices and supply constraints remain a heated discussion.
Devon Energy Corp. (NYSE:DVN)
Oklahoma-based Devon Energy engages in hydrocarbon exploration in the U.S. The energy company remains a darling for dividend-seeking investors, paying a regular quarterly dividend of $1.55 per share, representing a healthy yield of 3.64%.
Interestingly, alongside politicians, both retail investors and hedge funds have shown their conviction in Devon Energy and bought the stock in droves.
TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Devon Energy, with 6.2% of portfolios tracked by TipRanks increasing their exposure to DVN stock over the past 30 days.
Similarly, TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Devon Energy is currently Very Positive, as 16 hedge funds increased their cumulative holdings of DVN stock by 664,500 shares in the last quarter.
Is Devon Energy a Good Stock to Buy?
On TipRanks, Devon stock has a Moderate Buy consensus rating. This is based on seven Buys versus six Holds. The average Devon Energy price forecast of $85.46 implies 23.1% upside potential to current levels. Meanwhile, the stock has gained 61.1% so far this year.
Pioneer Natural Resources (NYSE:PXD)
Texas-based Pioneer Natural Resources engages in oil exploration and production in the Permian Basin, Eagle Ford Shale, Rockies, and West Panhandle projects. PXD boasts a massive 9.36% current yield with its regular quarterly dividend of $8.57 per share.
Like Devon, retail investors are highly bullish about Pioneer’s stock trajectory. As per TipRanks’ Stock Investors tool, 5.2% of portfolios tracked by TipRanks increased their exposure to PXD stock over the past 30 days.
Is PXD a Buy or Sell?
Pioneer Natural Resources stock has a Moderate Buy consensus rating on TipRanks. This is based on seven Buys, seven Holds, and one Sell. The average Pioneer Natural Resources price target of $288.57 implies 16.9% upside potential to current levels. Year to date, PXD stock has gained 42.9%.
NextEra Energy (NYSE:NEE)
Florida-based NextEra Energy is one of the largest electric power generators in the U.S. NextEra also pays a reasonable quarterly dividend of $0.42 per share, implying a current yield of 2.16%.
Notably, hedge funds have been highly optimistic about NEE stock’s trajectory. TipRanks’ Hedge Fund Trading Activity tool shows that confidence in NextEra Energy is currently Very Positive, as 23 hedge funds increased their cumulative holdings of NEE stock by 7.1 million shares in the last quarter.
Is NextEra Energy a Buy, Sell, or Hold?
On TipRanks, NEE stock commands a Strong Buy consensus rating. This is based on ten Buys and two Holds. The average NextEra Energy stock prediction of $99.30 implies 36.5% upside potential to current levels. Meanwhile, the stock has lost 19.3% year to date.
Ending Thoughts
With the energy sector being in the limelight, it is no surprise that politicians too want to get a bigger slice of the cake. All three companies pay a dividend and score a nine or “Perfect 10” on TipRanks’ Smart Score Rating System, implying that they have a high probability of outperforming market averages.
