- ChoiceOne Financial Services And 2 Other Reliable Dividend Stocks To Consider
Apr 23, 2025
Amid a surge in U.S. stock markets driven by optimism over easing China tariffs and renewed confidence in Federal Reserve policies, investors are keenly eyeing opportunities that promise stability and income. In such an environment, dividend stocks like ChoiceOne Financial Services stand out as reliable options for those seeking consistent returns amidst market volatility.
Top 10 Dividend Stocks In The United States
Name Dividend Yield Dividend Rating Columbia Banking System (NasdaqGS:COLB) 6.32% ★★★★★★ Interpublic Group of Companies (NYSE:IPG) 5.52% ★★★★★★ Douglas Dynamics (NYSE:PLOW) 5.00% ★★★★★★ Brookline Bancorp (NasdaqGS:BRKL) 5.36% ★★★★★★ First Interstate BancSystem (NasdaqGS:FIBK) 7.01% ★★★★★★ Dillard's (NYSE:DDS) 8.09% ★★★★★★ Citizens & Northern (NasdaqCM:CZNC) 5.75% ★★★★★★ Southside Bancshares (NYSE:SBSI) 5.10% ★★★★★★ Chevron (NYSE:CVX) 4.98% ★★★★★★ Ennis (NYSE:EBF) 5.48% ★★★★★★
Click here to see the full list of 163 stocks from our Top US Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
ChoiceOne Financial Services
Simply Wall St Dividend Rating: ★★★★★☆
Overview: ChoiceOne Financial Services, Inc. is a bank holding company for ChoiceOne Bank, offering banking services in Michigan with a market cap of $235.43 million.
Operations: ChoiceOne Financial Services, Inc. generates its revenue primarily from its banking segment, which accounts for $91.11 million.
Dividend Yield: 4.1%
ChoiceOne Financial Services offers a stable and reliable dividend, recently affirming a cash dividend of $0.28 per share, slightly higher than the previous year. Despite a lower yield of 4.14% compared to top-tier US dividend payers, its dividends are well covered by earnings with a low payout ratio of 33.3%. The company’s consistent dividend growth over the past decade adds appeal for income-focused investors, although recent board changes following a merger may impact future governance dynamics.
Get an in-depth perspective on ChoiceOne Financial Services' performance by reading our dividend report here. The analysis detailed in our ChoiceOne Financial Services valuation report hints at an deflated share price compared to its estimated value.NasdaqCM:COFS Dividend History as at Apr 2025
ESSA Bancorp
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ESSA Bancorp, Inc. is a bank holding company for ESSA Bank & Trust, offering various financial services to individuals, families, and businesses in Pennsylvania with a market cap of $176.84 million.
Operations: ESSA Bancorp, Inc. generates revenue primarily from its Thrift/Savings and Loan Institutions segment, which accounts for $67.43 million.
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Dividend Yield: 3.3%
ESSA Bancorp's dividend, yielding 3.3%, is reliably covered by a low payout ratio of 34.4%, though it trails top-tier US dividend payers. Dividends have grown steadily over the past decade with minimal volatility, reflecting stability and reliability for income investors. Recent earnings showed a slight decline in net income to US$3.96 million, while an upcoming merger with CNB may influence future strategic directions and governance, potentially affecting dividend sustainability and growth prospects.
Dive into the specifics of ESSA Bancorp here with our thorough dividend report. The valuation report we've compiled suggests that ESSA Bancorp's current price could be quite moderate.NasdaqGS:ESSA Dividend History as at Apr 2025
EOG Resources
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: EOG Resources, Inc. is engaged in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas across various producing basins in the United States and internationally, with a market cap of approximately $60.18 billion.
Operations: EOG Resources generates revenue primarily from its Crude Oil and Natural Gas Exploration and Production segment, which amounted to $23.48 billion.
Dividend Yield: 3.5%
EOG Resources offers a modest dividend yield of 3.5%, below the top US dividend payers, but maintains strong coverage with a payout ratio of 32.8%. Despite past volatility, dividends have grown over the last decade. Recent earnings showed a decrease in net income to US$6.4 billion for 2024. EOG's strategic alliance with TETRA Technologies on water treatment could enhance operational efficiency and potentially support future dividend stability amidst forecasted earnings declines.
Click here to discover the nuances of EOG Resources with our detailed analytical dividend report. Our valuation report here indicates EOG Resources may be undervalued.NYSE:EOG Dividend History as at Apr 2025
Where To Now?
Explore the 163 names from our Top US Dividend Stocks screener here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NasdaqCM:COFSNasdaqGS:ESSA and NYSE:EOG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Range Resources (RRC) Beats Q1 Earnings and Revenue Estimates
Apr 22, 2025
Range Resources (RRC) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $0.55 per share when it actually produced earnings of $0.68, delivering a surprise of 23.64%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Range Resources , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $854.02 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.25%. This compares to year-ago revenues of $718.23 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Range Resources shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -12.3%.
What's Next for Range Resources?
While Range Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Range Resources: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $758.66 million in revenues for the coming quarter and $3.58 on $3.19 billion in revenues for the current fiscal year.
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Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, EOG Resources (EOG), is yet to report results for the quarter ended March 2025. The results are expected to be released on May 1.
This oil and gas company is expected to post quarterly earnings of $2.73 per share in its upcoming report, which represents a year-over-year change of -3.2%. The consensus EPS estimate for the quarter has been revised 10.7% lower over the last 30 days to the current level.
EOG Resources' revenues are expected to be $5.88 billion, down 4% from the year-ago quarter.
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- KeyBanc cuts oil forecast but upgrades Expand Energy on natural gas outlook
Apr 21, 2025
Investing.com -- KeyBanc Capital Markets lowered its oil price forecast and raised its natural gas outlook, reflecting a shift in commodity expectations ahead of the first-quarter earnings season.
The firm also upgraded natural gas producer Expand Energy to “Overweight” with a $130 price target, citing its defensiveness and investment-grade status.
KeyBanc now forecasts WTI crude at $66 in 2025 and $65 in 2026, down 11% and 8%, respectively. The firm lifted its Henry Hub gas outlook to $3.80 for both years, up 21% and 9%.
We believe oil prices are overly pressured near term, KeyBanc wrote, adding that the natural gas setup remains recession-proof, although perhaps not 100% tariff-proof.
The firm sees Expand as well-positioned amid investor preference for large, stable gas-weighted equities.
Spring marketing trips confirm natural gas remains the safety trade, analysts said, noting that institutional investors remain constructive on the commodity despite recent pullbacks.
KeyBanc downgraded Murphy Oil (NYSE:MUR) to “Sector Weight” and removed its $37 target, citing lack of hedging, limited buyback flexibility, and muted interest in offshore operators.
The firm also trimmed price targets across its oil-levered coverage, including cuts for EOG Resources (NYSE:EOG), Diamondback (NASDAQ:FANG) Energy, and Viper Energy (NASDAQ:VNOM).
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- The Oil Patch’s ‘Manhattan Project’: How to Fix Its Gargantuan Water Problem
Apr 21, 2025
Oil companies wrestling with huge amounts of wastewater have bold plans to turn the nuisance into a valuable product.
Continue Reading
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- These 2 Oils-Energy Stocks Could Beat Earnings: Why They Should Be on Your Radar
Apr 18, 2025
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
2 Stocks to Add to Your Watchlist
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to look at a qualifying stock. EOG Resources (EOG) holds a Zacks Rank #3 at the moment and its Most Accurate Estimate comes in at $2.75 a share 13 days away from its upcoming earnings release on May 1, 2025.
By taking the percentage difference between the $2.75 Most Accurate Estimate and the $2.74 Zacks Consensus Estimate, EOG Resources has an Earnings ESP of 0.14%.
EOG is part of a big group of Oils-Energy stocks that boast a positive ESP, and investors may want to take a look at Weatherford (WFRD) as well.
Weatherford is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on April 22, 2025. WFRD's Most Accurate Estimate sits at $0.90 a share four days from its next earnings release.
Weatherford's Earnings ESP figure currently stands at 1.5% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.89.
EOG and WFRD's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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- Will EOG Resources (EOG) Beat Estimates Again in Its Next Earnings Report?
Apr 17, 2025
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider EOG Resources (EOG). This company, which is in the Zacks Oil and Gas - Exploration and Production - United States industry, shows potential for another earnings beat.
This oil and gas company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.66%.
For the most recent quarter, EOG Resources was expected to post earnings of $2.55 per share, but it reported $2.74 per share instead, representing a surprise of 7.45%. For the previous quarter, the consensus estimate was $2.73 per share, while it actually produced $2.89 per share, a surprise of 5.86%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for EOG Resources. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
EOG Resources currently has an Earnings ESP of +0.14%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 1, 2025.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
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Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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- Here's Why Hold Strategy is Apt for ConocoPhillips Stock Now
Apr 17, 2025
ConocoPhillips COP, a leading upstream energy firm in terms of production and reserves, is well-positioned to capitalize on handsome crude prices. Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Factors Working in Favor of COP
West Texas Intermediate crude price, currently trading above the $60-per-barrel mark, is still favorable for upstream activities, as the breakeven oil price is significantly lower for existing wells in the shale plays.
COP secured a solid production outlook thanks to its decades of drilling inventories across its low-cost and diversified upstream asset base. The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, the Permian Basin and Bakken shale. COP boasted that its drilling and completion activities are becoming more efficient in all key U.S. basins.
Compared with composite stocks belonging to the industry, the leading upstream energy company has considerably lower exposure to debt capital. This reflects that COP is better positioned to rely on its strong balance sheet to withstand any adverse business scenario.
Risks to the COP’s Business
Being an upstream energy player, the company’s overall operations are exposed to oil and natural gas price volatility. Other exploration and production players that are also exposed to commodity price volatility are EOG Resources EOG, Diamondback Energy, Inc. FANG and Matador Resources Company MTDR.
EOG Resources
In the United States, EOG Resources is one of the foremost explorers and producers of oil and gas. It has crude reserves across the United States and Trinidad.
Diamondback Energy
Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company will likely continue witnessing increased production volumes.
Matador Resources
Matador Resources is a well-known exploration and production company with a strong footprint in the prolific Wolfcamp and Bone Spring plays in the oil-rich Delaware Basin.
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- Is OG Resources Inc. (NYSE:EOG) the Most Undervalued Quality Stock to Buy Now?
Apr 16, 2025
We recently published a list of the 11 Most Undervalued Quality Stocks to Buy Now. In this article, we are going to take a look at where OG Resources Inc. (NYSE:EOG) stands against other undervalued quality stocks to buy now.
On February 24, Kayne Anderson Rudnick chief market strategist Julie Biel joined ‘The Exchange’ on CNBC to discuss her thoughts on how good quality companies can ride out turbulence in the market. Just like Warren Buffett and Charlie Munger, Biel also suggests inaction as an investment principle and believes that holding high-quality companies can help investors deal with market volatility. She emphasized conviction in investing instead of impulsive decision-making. Biel also noted the general resilience of the US economy, which mainly comes from a robust jobs market as it fuels the consumer-driven economy. She also expressed unease over the limited tools available to address a potential recession that could come from high levels of deficit spending. She thinks inefficient businesses should be allowed to fail while protecting employees during economic cycles.
Biel addressed small-cap stocks and explained that they struggle due to their higher leverage and sensitivity to prolonged higher interest rates. They often include significant exposure to real estate and banking sectors and have a high proportion of non-earning companies. She then emphasized that even if one were to invest in small caps, the ideal approach would be to look at high-quality small-cap companies that can yield strong results. Biel’s stock picks are quality companies that focus on tangible and physical solutions instead of those with foundations in hyped technologies like AI. While she acknowledged AI’s potential, she argued that it’s becoming standard and can no longer be categorized as a differentiator.
Our Methodology
We sifted through the Vanguard U.S. Quality Factor ETF holdings to compile a list of the top stocks that had a forward P/E ratio under 15 as of April 14. We then selected the 11 undervalued stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Is OG Resources Inc. (NYSE:EOG) the Most Undervalued Quality Stock to Buy Now?
An oil rig in action in a vast desert, drilling for natural gas.
OG Resources Inc. (NYSE:EOG)
Forward P/E Ratio as of April 14: 10.05
Number of Hedge Fund Holders: 62
EOG Resources Inc. (NYSE:EOG) explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins mainly in the US, the Republic of Trinidad and Tobago, and internationally. The exploration and production of oil and natural gas drive the majority of the company’s revenue.
The company holds more than 10 billion barrels of oil equivalent, with an average after-tax rate of return that exceeds 55% based on $45 oil and $2.50 natural gas. In 2024, the company’s production exceeded forecasts, with oil volume growing by 3% and total production by 8%. The proved reserves increased by 6% to 4.7 billion barrels of oil equivalent. The company reduced average well costs by 6% this year.
In the Delaware Basin, it increased drill feet per day by 10% and completed feet per day by 20%. Utica operations saw a 50% increase in drilled feet per day. The Dorado operations saw a 15% increase in both drilled feet per day and completed lateral feet per day. OG Resources Inc. (NYSE:EOG) has also invested in infrastructure. Instances include the Verde pipeline (1 Bcf/day capacity) and the Janus natural gas processing plant (300 million cubic feet/day capacity).
Overall, EOG ranks 6th on our list of the most undervalued quality stocks to buy now. While we acknowledge the growth potential of EOG, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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- Is EOG Resources, Inc. (EOG) the Best Oil Stock to Invest in According to Billionaires?
Apr 15, 2025
We recently published a list of the 10 Best Oil Stocks to Invest in According to Billionaires. In this article, we are going to take a look at where EOG Resources, Inc. (NYSE:EOG) stands against other best oil stocks.
After an encouraging start to the year, the energy sector is once again lagging behind the overall market. At the time of writing this piece, the broader energy sector has slid by almost 8.2% since the beginning of 2025, against declines of around 7.9% by the wider market. The principal reason behind this fall is the decline in the global prices of oil, which have plunged by almost 14.5% since the beginning of the year.
READ NEXT: 10 Best Clean Energy Stocks to Buy According to Billionaires
The continued uncertainty surrounding the ongoing tariff war and the recent decision by OPEC+ to increase supply in May have taken a toll on the global price, with the West Texas Intermediate (WTI) crude price now hovering around a 3-year low of $61.5. The US Energy Information Administration (EIA) has forecasted WTI price to average $63.88 per barrel for 2025 before dropping to an average of $57.48 next year. Such a sharp decline in prices could threaten US oil production growth this year. According to data from the Federal Reserve Bank of Dallas, the US oil industry needs prices between $61 and $70 per barrel to be profitable.
The escalating trade tensions between the US and China have also raised the prospect of a global economic slowdown, potentially leading to a lower-than-forecasted consumption of oil. In its latest report, the EIA now expects global oil consumption to increase by 900,000 b/d in 2025 and 1 million b/d in 2026, down by 400,000 b/d and 100,000 b/d, respectively, from its initial forecast last month. The decrease in demand, coupled with increasing production, will continue putting pressure on crude prices, forcing many industry players to cut back activity to maintain investor payouts.
The American oil and gas sector is also frustrated by the back and forth trade policies of President Trump and is questioning how they align with his ‘drill, baby, drill’ mandate to further boost production. According to a survey by the Federal Reserve Bank of Dallas, nearly a third of oil executives have stated that their business outlook has worsened since the end of 2024. Moreover, the imposition of the 25% tariff on steel and aluminum has already led to an estimated 4% increase in costs for drilling a well.
The pressing issues surrounding the global oil trade have forced the industry to shift focus to its second major source of revenue – natural gas. In contrast to oil, the benchmark US natural gas price at Henry Hub has surged by more than 123% since last year and by almost 18% since the beginning of 2025. The uptick comes as a result of slowing output in 2024, booming LNG exports, and fast-depleting inventories during the coldest winter in six years. Moreover, natural gas has emerged as a leading candidate to power the ongoing AI boom and its accompanying data centers, with many providers now even aiming to surpass utilities and supply directly to these power-hungry facilities.
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Also, despite the broad concerns, many billionaires continue to invest and remain bullish on the oil sector. A great example is how Warren Buffett’s Berkshire Hathaway maintains significant holdings in multiple oil majors and even recently invested hundreds of millions of dollars in an oil and gas giant over the last few months.Is EOG Resources, Inc. (EOG) the Best Oil Stock to Invest in According to Billionaires?
An oil rig in action in a vast desert, drilling for natural gas.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 10 companies operating in the oil sector with the highest number of billionaire investors in the Insider Monkey database in Q4 of 2024. When two or more companies had the same number of billionaires backing them, we ranked them by the revenue of their last financial year. Following are the Best Oil Stocks According to Billionaires.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
EOG Resources, Inc. (NYSE:EOG)
Number of Billionaire Holders: 13
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad.
EOG Resources, Inc. (NYSE:EOG) reported mixed results in Q4 2024 as its revenue of $5.6 billion was down 12.14% YoY and missed expectations by $360 million. However, the company’s adjusted EPS of $2.74 managed to top estimates by $0.17. EOG invested $6.2 billion in CapEx in 2024, driving an annual production growth of 3% in oil and 8% in total company volume. Despite a tough market, the oil and gas producer intends to spend $6.2 billion again in 2025 to grow oil production by another 3% and total production by 6% in 2025. The growth this year is more heavily oil-weighted due to the company’s well mix in the Delaware Basin.
EOG Resources, Inc. (NYSE:EOG) maintains a robust balance sheet and ended 2024 with $7.1 billion in cash, including approximately $700 million of estimated tax payments postponed to 2025 under IRS storm-related tax relief. The company returned a record $5.3 billion to shareholders in 2024, representing 98% of its free cash flow and well in excess of its commitment to return a minimum of 70% of annual free cash flow to shareholders. EOG has never reduced or suspended its regular dividend in the last 27 years and has grown its dividend rate twice as fast as its peers’ average since 2019. The company currently boasts an annual dividend yield of 3.59%.
Overall, EOG ranks 10th on our list of the best oil stocks to invest in according to billionaires. While we acknowledge the potential of EOG to grow , our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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- OPEC Revises Oil Demand Outlook Amid Shifting Market Trends
Apr 15, 2025
The latest monthly report from OPEC shows that the cartel has revised its global oil demand growth forecast for 2025 downward for the first time since December, now projecting an increase of 1.3 million barrels per day (bpd) — 150,000 bpd less than previous estimates. The revision stems largely from slower-than-expected consumption and new U.S. tariffs that have rattled trade dynamics and economic sentiment globally. As President Trump ramps up tariff measures, including a 125% levy on Chinese imports, investors are growing increasingly wary about how this might dampen energy demand, particularly in emerging markets.
Despite these geopolitical headwinds, oil prices remain relatively steady, with WTI crude hovering over $60 per barrel. However, volatility is high. Crude futures are down more than 10% so far this month, largely on fears that slowing global trade and rising supply will pressure prices. Against this backdrop, it may be wise for investors to adopt a more defensive approach—one that focuses on large, resilient players like Chevron CVX, ConocoPhillips COP, and EOG Resources EOG. These companies have the scale, balance sheets, and capital discipline to navigate turbulence, making them safer bets in uncertain times.
Demand Softens Amid Economic Uncertainty
OPEC’s cautious tone isn’t just based on oil-specific fundamentals. The group’s Monthly Oil Market Report also trimmed its global economic growth outlook for 2025 to 3.0%, from 3.1%, reflecting growing uncertainty in light of the ongoing trade tensions. The U.S. economy is forecasted to expand by 2.1% in 2025, while growth in the Eurozone and China is expected to slow to 0.8% and 4.6%, respectively. These projections imply weaker industrial activity and transport fuel demand—the key drivers of global oil consumption.
OECD nations are forecast to contribute a mere 40,000 bpd to demand growth in 2025, while non-OECD countries, traditionally the growth engine, are expected to add around 1.25 million bpd. However, these numbers could fall if trade tensions and inflation continue to hurt energy use by consumers and businesses.
Supply Dynamics: OPEC+ Output and the U.S. Role
On the supply front, OPEC’s report showed that the broader OPEC+ group reduced output slightly in March, with total production falling by 37,000 bpd to 41.02 million bpd. Cuts from Nigeria and Iraq offset gains from Kazakhstan, which continues to exceed its output cap. However, OPEC+ is scheduled to increase output again in May, raising questions about how the additional barrels will be absorbed in a softer demand environment.
Meanwhile, non-OPEC supply growth has also been revised down. OPEC now expects non-OPEC+ liquids production to rise by 900,000 bpd in 2025—100,000 bpd less than previously forecast. Most of this increase is still expected to come from the U.S., Canada, Brazil, and Argentina. However, with U.S. shale growth slowing and cost inflation a growing concern, the global supply outlook looks slightly more balanced than a month ago.
Story Continues
Where Are Oil Prices Headed?
The near-term outlook for oil is shaped by two opposing forces: weak demand growth weighed down by economic uncertainty and trade friction, versus constrained supply growth and OPEC+ discipline. While the trade war has clouded investor sentiment, the fundamentals don’t suggest a collapse. Air travel demand remains solid, road mobility is recovering, and oil use is still expected to grow, albeit at a slower pace.
Moreover, OPEC’s view remains more optimistic than other forecasters. While Goldman Sachs and Morgan Stanley have cut their demand forecasts sharply, OPEC still sees long-term demand trending higher, unlike the Paris-headquartered International Energy Agency (IEA), which anticipates a peak within the decade.
For investors, the takeaway is clear: volatility is here to stay. But energy is still a vital part of the global economy, and demand isn’t going away—it’s just shifting. That’s why it’s smart to stick with strong, stable companies that generate solid cash flow.
Conclusion: Lean on the Defensives
With tariffs roiling markets and macro uncertainty clouding short-term outlooks, it’s prudent to hold on to proven, cash-generating energy stocks. Companies like Chevron, ConocoPhillips, and EOG Resources offer resilience and upside potential once the market regains clarity.
OPEC’s latest report may signal a slower pace of demand growth, but it also confirms that oil is still very much a necessary commodity. In times like these, investors should stay patient, avoid chasing volatility, and lean on the Zacks Rank #3 (Hold) names best equipped to ride out the storm.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron: Chevron is well-run and historically a profitable big oil giant. Chevron’s upstream portfolio remains a key strength, with strong production growth from the Permian Basin and Kazakhstan. The company is targeting a 6% annual production increase through 2026, with high-margin projects driving long-term value. Chevron continues to be a strong dividend player, having increased its payout for 37 consecutive years. The latest dividend hike of 4.9% takes its yield to over 4%, making it a reliable income source for long-term investors.
ConocoPhillips: Based on production and reserves, ConocoPhillips is among the leading upstream energy players in the United States. In 2024, COP produced a record 1,987 thousand barrels of oil equivalent per day globally, thanks to its strong presence in the prolific low-cost resources in the U.S. Lower 48 and Alaska, along with Asia, Australia, Africa, Europe and Canada. ConocoPhillips, with a debt-to-capitalization of 27.3%, is also demonstrating its strong financials and is well-positioned to navigate the tariff-induced market uncertainty.
EOG Resources: In the United States, EOG is among the largest oil and natural gas exploration and production companies. As of year-end 2024, the firm reported total net proved developed reserves of 2,566 million barrels of oil equivalent. Despite the decline in oil prices, EOG’s operations in low-cost resources like the Delaware Basin, a sub-basin of the broader Permian and Eagle Ford shale play, are still profitable. EOG Resources also has a strong balance sheet that the upstream player can rely on to ride the current uncertain business environment. Notably, EOG Resources’ low debt-to-capitalization of 13.9% is considerably below the industry’s 51.4%.
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