10 Best Depressed Stocks To Buy Heading into 2025

3. Borr Drilling Limited (NYSE:BORR)

52 Week Range: $5.09 – $7.61 

Current Share Price: $5.10

Number of Hedge Fund Holders: 11

Analyst Upside Potential: 69.74%

Borr Drilling Limited (NYSE:BORR) is another offshore drilling services company that focuses on shallow-water areas. They specialize in Jack-up Rigs, which are platforms that can be raised above the water to drill for oil and gas in shallow waters usually up to 400 feet deep. The company owns 24 modern rigs which they rent to clients on a daily basis, earning them rental income.

The company has operations in the North Sea, Mexico, West Africa, Southeast Asia, and the Middle East. It recently delivered a new jack-up rig, The Vale, and is on track to deliver another, The Var, by late FQ4 2024. During the second quarter of fiscal 2024, Borr Drilling Limited (NYSE:BORR) delivered an adjusted EBITDA of $136.4 million, up from $116.8 million during the first quarter. Moreover, its EBITDA margins also bested its guidance by 2 basis points and came in at 50.2% while the expectations were 50%.

All of the company’s rigs are contracted, indicating that it continues to secure contracts at favorable day rates, including a long-term contract for the Arabia I rig in Brazil. Moreover, management also revealed that they have achieved a technical utilization rate of 99.2% and an economic utilization rate of 98.4% in the second quarter, indicating strong operational performance. It is one of the best-depressed stocks to buy heading into 2025.