10 Best Affordable Stocks Under $5 to Buy Now

6. Borr Drilling Limited (NYSE:BORR)

Number of Hedge Fund Holdings: 10

Forward P/E Ratio as of January 24: 4.96

Earnings Growth This Year: 100.00%

Stock Price as of January 24: $3.52

Borr Drilling Limited (NYSE:BORR) is an offshore drilling contractor specializing in providing high-quality drilling services to the oil and gas industry. The company owns and operates a fleet of modern jack-up rigs, which are deployed to explore and produce hydrocarbons in shallow waters. Borr Drilling Limited’s (NYSE:BORR) clientele includes major oil companies and national oil corporations.

Borr Drilling Limited (NYSE:BORR) has consistently invested in modernizing and expanding its fleet to maintain a competitive edge in the market. The recent completion of its new build program, with the delivery of the Var, brings the company’s total fleet to 24 premium rigs, the youngest in the industry. This strategic investment not only enhances the company’s operational capabilities but also positions it to meet the evolving needs of its clients, who increasingly demand state-of-the-art technology and high performance. The company’s focus on maintaining a modern fleet is expected to drive long-term contracts and higher day rates, contributing to sustained revenue growth and profitability.

To mitigate the risks associated with regional market fluctuations, Borr Drilling Limited (NYSE:BORR) is diversifying its contract portfolio across multiple regions, including the North Sea, the Middle East, Africa, and Asia. This diversification strategy has been instrumental in securing a strong backlog of contracts. The company is also actively exploring opportunities to reduce its environmental footprint and is upgrading its Prospector 1 rig to operate with 100% green energy, which will enable the rig to achieve near-zero emission levels.