Energy stocks performed surprisingly poorly in 2019. According to The Motley Fool, the average energy stock in the Vanguard Energy ETF (NYSE: VDE) only jumped by around 5% in 2019, compared to the S&P 500 and crude oil which both gained about 30%.
Still, energy stocks stand to perform relatively well in 2020. Here are five promising energy stocks that hedge funds are buying in 2020.
Helix Energy Solutions Group
Helix Energy Solutions Group Inc. (NYSE: HLX) is an international energy company with a market cap of $1.3 billion.
Over the past decade, the company’s revenue has dropped by nearly 12%. Additionally, at around $8.75, HLX’s share price is about 32.6% above its 52-week low and around 12.5% below the 52-week high.
Gotham Asset Management owns 0.04% of outstanding shares while Renaissance Technologies owns 0.29%.
Enerplus Corp. (NYSE: ERF) is an energy company that owns natural gas and crude oil assets in the US and Canada. ERF has a market cap of $1.14 billion.
Over the past 10 years, the company’s revenue has dropped 7.7% to $1.11 billion. The company’s current share price of $5.18 is about 3% higher than the 52-week low and 42% lower than the 52-week high.
Renaissance Technologies also owns a significant stake in ERF with 0.17% of outstanding shares.
Next is Callon Petroleum Co. (NYSE: CPE) — an oil and natural gas producer with a market cap of $1.39 billion.
CPE is trading with a 3.04 price-earnings ratio and is trading at around 61.7% below its 52-week high. The company has recently hit a new 52-week low and its revenue has dropped by 10.5% over the past decade.
Several hedge funds and stock gurus hold stakes in CPE. This includes Barrow, Hanley, Mewhinney & Strauss with 3.35% of outstanding shares, Hotchkis & Wiley with 0.27%, and John Paulson with 9.45%.
SemGroup Corp. (NYSE: SEMG) focuses on the transportation & storage of oil and the processing and selling of natural gas.
The company recently completed a merger with Energy Transfer LP (NYSE: ET) and is no longer a publicly-traded company on the NYSE. The company previously had a market cap of $1.2 billion and the stock has lost 46.34% in the last 10 years.
The company’s most notable shareholder is George Soros, with 0.16% of outstanding shares in the now-acquired company.
Golar LNG Ltd. (NASDAQ: GLNG) specializes in the trading and transportation of liquefied natural gas and has a market cap of $1.09 billion.
The company’s revenue has dropped 10.3% over the past 10 years to $491.64 million. GLNG is trading 43% below the 52-week high and 10% above the 52-week low and is trading with a price-book ratio of 0.72.
Notable shareholders include Francisco Garcia Parames with 3.18% of outstanding shares, Pioneer Investments with 0.23%, and many others.
Article By: Connor Beam