10 Best Geothermal Stocks to Buy According to Hedge Funds

8. Weatherford (NASDAQ:WFRD) 

Number of Hedge Fund Investors: 36

Weatherford (NASDAQ:WFRD) offers a wide range of oilfield services in international markets for various types of oilfields. The company is the global market leader for artificial lift and tubular running services. Other important product lines include cementing materials, directional drilling, and wireline evaluation. It is one of the bigger oilfield services companies in an otherwise highly fragmented market.

Weatherford (NASDAQ:WFRD) is among the Best Geothermal Stocks. It specializes in geothermal energy, using advanced liner systems built for harsh wellbore conditions. Its Drilling-with-Liner technology simplifies operations by integrating drilling and casing, saving time and money. This method also improves wellbore stability, which is essential for high-temperature, high-pressure geothermal conditions.

In the fiscal year 2024, the company’s adjusted EBITDA margins exceeded 25%, the best full-year margin in more than 15 years. Weatherford (NASDAQ:WFRD) generated $524 million in adjusted free cash flow, showing a high cash generation ability. In 2024, the company’s international business expanded substantially in the Middle East, North Africa, and Asia areas, growing by 10% on a full-year basis. Its Well Services product line has increased by more than 50% over the last three years, proving a significant growth vector with low capital expenditure.

The firm declared two quarterly dividends of $0.25 per share and repurchased roughly $99 million of shares in the second half of 2024.

Rewey Asset Management stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q4 2024 investor letter:

“We added shares of Weatherford International plc (NASDAQ:WFRD) in the quarter, a $5.2 billion market cap global provider of oil field services and equipment. We see significant neglect and undervaluation in shares of WFRD, a position that shows a 59.2% upside to our AFV price target of $114 per share, a level that would still be 15.6% below its July 16th, 2024 high of $135.

Weatherford sold off in concert with the broader energy group in 4Q24, as investors fretted about the risks of slowing global oilfield spending in 2025, the potential for more drilling to push down oil prices under a Trump administration andtax loss selling by investors who purchased shares near summer highs. In our view, the current valuation level ignores the significant financial and operational improvement completed since its 2019 restructuring and the strong long-term revenue growth prospects for its globally diversified and technologically leading offerings…” (Click here to read the full text)