10 Best Falling Stocks To Buy According to Hedge Funds

6. Noble Corporation plc (NYSE:NE)

52 Week Range: $32.49 – $52.15

Current Share Price: $32.65

Number of Hedge Fund Holders: 38 

Noble Corporation plc (NYSE:NE) is an offshore drilling contractor that serves the oil and gas industry. The company specializes in drilling beneath the ocean with its fleet of ships and rigs designed for the very purpose. Its portfolio includes around 32 offshore drilling units which are divided into 19 units of Floaters and 13 units of Jackups. The company operates in various regions including Africa, Asia, the Middle East, the Gulf of Mexico, and South America.

On September 4, Noble Corporation plc (NYSE:NE) announced the successful acquisition of Diamond Offshore Drilling as a strategic move that significantly improved its position in the drilling industry. The acquisition resulted in one of the largest fleets of 7th-generation dual-BOP drillships, thereby enhancing the company’s capabilities. Moreover, it also added a significant backlog of around $2 billion for the company taking its overall backlog to $6.7 billion as of October 2nd, 2024.

Noble Corporation plc (NYSE:NE) demonstrated its financial strength during the fiscal 2024 second-quarter results. The contract drilling revenue of the company was around $693 million indicating an 8.51% increase year-over-year. Moreover, the company also improved its adjusted EBITDA margins from 29% in Q1 of fiscal 2024 to 39% during Q2.

The growing backlog for the company and year-over-year increase in drilling revenue indicates its ability to effectively land and execute new contracts. Although the stock was trading close to its 52-week low it was still held by 38 hedge funds in Q2 2024 as per Insider Monkey’s database. Thereby making it one of the best falling stocks to buy according to hedge funds.

Carillon Scout Mid Cap Fund made the following comment about Noble Corporation Plc (NYSE:NE) in its Q3 2023 investor letter:

“Noble Corporation Plc (NYSE:NE), an offshore contract driller, benefited from improved sentiment regarding the offshore drilling business as higher day rates, the all-in daily costs of renting a drilling rig, were reported across the industry. The supply and demand for offshore rigs has tightened considerably.”