10 Best Penny Stocks To Buy According to the Media

4. Tetra Technologies, Inc. (NYSE:TTI)

Number of Hedge Fund Holders: 23

Tetra Technologies Inc. (NYSE:TTI) is an energy services company that helps oil and gas companies with the fluids and water management needed for drilling and maintaining oil and gas wells. The company operates through two main business segments, the Completion Fluids & Products Division and the Water & Flowback Services Division.

Tetra Technologies Inc. (NYSE:TTI) manufactures and sells clear brine fluids, additives, and other related products and services to oil and gas well drilling companies under its Completion Fluids & Products Division. They also produce liquid and dry calcium chloride and ultra-pure zinc bromide under the same segment and market it to battery technology companies in the United States and internationally. On the other hand, the Water & Flowback Services Division segment offers water management services including frac flow back, production well testing, and other related services to onshore oil and gas operations.

What makes Tetra Technologies Inc. unique is its ability to capitalize on offshore and deepwater activities. The company’s adjusted EBITDA grew by 11% year over year to $22.8 million in Q1 2024, mainly driven by strong Completion Fluids & Products adjusted EBITDA margins of 28.1% and 15 offshore deepwater operations that the company serviced during the quarter. The company has also been working in the TETRA CS Neptune family of novel completion fluids, which is an environment friendly and cost-effective alternative to zinc brines. The demand for high-value bromine-based Completion Fluids that include TETRA CS Neptune has increased globally. Therefore, the company has made strategic investments in the Gulf of Mexico, Brazil, and the North Sea, which will grow the company’s CS Neptune pipeline further. In addition, the company’s TETRA PureFlow ultra-pure zinc bromide, which is used for stationary battery and energy storage applications, gives Tetra Technologies Inc. a competitive edge in the global transition towards renewable energy and presents an opportunity for revenue diversification.

Is TTI presenting an attractive entry point? The stock is currently trading at 13 times its forward earnings estimates, a 65.54% discount to its 5-year average. Moreover, analysts expect the company to grow its EPS by 11.5% this year. On the Street, 6 analysts hold a Buy opinion on TTI and their 1-year median price target of $7.50 implies an upside of 99.47% from current levels.