10 Best US Stocks Under $10 to Buy Right Now

4. Patterson-UTI Energy Inc. (NASDAQ:PTEN)

Share Price as of March 24: $8.38

Number of Hedge Fund Holders: 47

Patterson-UTI Energy Inc. (NASDAQ:PTEN) provides drilling and completion services to the oil and natural gas industry. It operates across onshore basins in the US and internationally. It has three segments that offer contract drilling, completion services including hydraulic fracturing & cementing, and drilling products like drill bits & specialized tools.

The company’s Drilling Services delivered steady adjusted gross profit per day in Q4 2024, despite industry-wide slowdowns. The company is integrating its high-quality Apex rigs with services like directional drilling, downhole tools, and CoreTex automation systems. It currently operates 107 rigs in the US, with $426 million secured in future day-rate drilling revenue. For Q1 2025, it projects 106 active rigs, with an adjusted gross profit per operating day of ~$15,250.

The company is transitioning towards more integrated commercial and operating models. It’s focusing on capturing a larger share of the drilling spend and adopting performance-based agreements to enhance margins. Patterson-UTI Energy Inc.’s (NASDAQ:PTEN) advanced Apex rigs, technical teams, and upcoming P10 data center drive cost-effective drilling. The company is capitalizing on the growing natural gas market and anticipates increased drilling activity.

Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in its Q4 2023 investor letter:

Patterson-UTI Energy, Inc. (NASDAQ:PTEN): Lower energy prices and depressed rig counts caused the underperformance during the quarter. Recently completed merger with NextTier Oilfield Solutions and the acquisition of Ulterra should drive improved cash flow and cost synergy opportunities.”