10 Best Low Priced Growth Stocks To Invest In

6. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Revenue CAGR last 5 years: 29.52%

Stock price as of April 7^th close: $5.69

Number of Hedge Fund Holders: 47

​Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a provider of drilling and completion services for oil & gas exploration and production in the US and some international markets. PTEN offers several core services, such as contract drilling, integrated well completion, and directional drilling, which are crucial for the exploration process. Additionally, the company provides specialized drill bit solutions that help with exploration in difficult areas within the US, the Middle East, and other regions. The Houston-based company ranked 8^th on our recent list of 12 Best Oil and Gas Dividend Stocks According to Billionaires.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) delivered value-accretive results and strong free cash flow in 2024, reducing their share count by over 6% through buybacks while paying dividends equal to 4% of market cap and reducing net debt by almost $100 million. Management announced a strategy focused on three key pillars: monetizing value-based solutions, managing cost structure, and strategic capital allocation with a commitment to return at least 50% of adjusted free cash flow to shareholders. Their integrated drilling and completion arrangements have shown success, delivering wells significantly faster than historical averages while earning performance bonuses.

Looking ahead to 2025, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) expects steady drilling activity with supportive oil commodity prices, while natural gas activity could potentially increase later in the year and into 2026. The company is well-positioned in both drilling and completions, with approximately 80% of its active fleet capable of being powered by natural gas. The company is also strategically positioned to capitalize on the growing power demand in the Permian Basin, where estimates suggest a need for 4 gigawatts of off-grid power over the next 10 years. PTEN is not only a reliable executor and capital allocator with stable cash flows but also a high growth company with strong guidance ahead, which makes us include it on our list of the best low priced stocks to consider.