10 Cheap Growth Stocks to Buy Now

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1. Ring Energy Inc. (NYSE:REI)

Price to Earnings ratio: 2.12

Ring Energy Inc. (NYSE:REI) is an oil and gas exploration and production company focused on developing its Permian Basin assets in Texas.

On Feb 26, 2025 Ring Energy Inc. (NYSE:REI) announced a $100 million acquisition of Lime Rock Resources IV, LP’s Central Basin Platform (CBP) assets. This further strengthens its Permian Basin footprint. The acquisition, consisting of $80 million in upfront cash, a $10 million deferred payment, and up to 7.4 million shares of common stock, is expected to boost production, improve operational synergies, and enhance free cash flow generation. The newly acquired 17,700 net acres contribute 2,300 barrels of oil equivalent per day (over 80% oil) of low-decline production across 101 gross wells.

Ring Energy Inc. (NYSE:REI) reported record sales of 20,108 barrels of oil equivalent per day (66% oil) for Q3 2024, exceeding guidance, with oil sales of 13,204 barrels of oil per day. The company posted a net income of $33.9 million and Adjusted Net Income of $13.4 million, reflecting strong operational efficiency. It successfully reduced its debt by $15 million, ending Q3 with $392 million in outstanding borrowings, while boosting its liquidity to $208 million.

Overall, Ring Energy Inc. (NYSE:REI) ranks first on our list of the 10 Cheap Growth Stocks to Buy Now. While we acknowledge the potential for REI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than REI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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