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Should Investors Buy the Dip in Noble Energy (NBL) Stock?

Alex Smith
·3 min read

Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Diamond Hill Capital highlighted a few stocks and Noble Energy Inc (NASDAQ:NBL) is one of them. Noble Energy is an oil and gas exploration company. Year-to-date, Noble Energy Inc (NASDAQ:NBL) stock lost 60.8% and on June 2nd it had a closing price of $9.81. Here is what Diamond Hill Capital said:

"We purchased oil and gas exploration and production company Noble Energy, Inc. at an attractive discount to our estimate of intrinsic value as equity values for oil producing companies declined rapidly in the quarter."

Best Paying Blue Collar Jobs in the US
Best Paying Blue Collar Jobs in the US

In Q1 2020, the number of bullish hedge fund positions on Noble Energy Inc (NASDAQ:NBL) stock increased by about 25% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with NBL's growth potential. Our calculations showed that Noble Energy Inc (NASDAQ:NBL) isn't among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020's unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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Disclosure: None. This article is originally published at Insider Monkey.