10 Hot New Stocks to Buy Now

6. LandBridge Company LLC (NYSE:LB)

6-Months Performance: 97.78%

Analyst Upside Potential: 11.81%

Number of Hedge Fund Holders: 20

LandBridge Company LLC (NYSE:LB) manages land and resources in the Permian Basin, specifically the Delaware Basin, which is a hotspot for oil and gas activity. The company owns around 273,000 surface acres in Texas and New Mexico. Instead of focusing on drilling, the company leases its land to oil and gas companies and for other industrial operations34. This strategy allows them to have a diverse income stream, which reduces their dependency on fluctuating oil prices.

On January 28, Raymond James raised their price target on the company from $80 to $85, while maintaining an Outperform rating on the stock. The firm noted that while the recent quarter was satisfactory for midstream companies, it wasn’t exceptional. They noted that 2024 was a significant year for midstream suppliers, with continued growth anticipated into 2025.

During the fiscal third quarter of 2024, LandBridge Company LLC (NYSE:LB) experienced a 60% year-over-year increase in revenue and a 62% increase in adjusted EBITDA. The company has successfully shifted its revenue streams to reduce direct exposure to commodity price fluctuations. Non-oil and gas royalty revenue, which includes surface use royalties, revenues, and resource sales, now constitute 90% of overall revenues, up from 83% in the last quarter. It is one of the hot new stocks to buy now.

Ave Maria Focused Fund stated the following regarding LandBridge Company LLC (NYSE:LB) in its Q3 2024 investor letter:

“LandBridge Company LLC (NYSE:LB): LandBridge is a land management company that operates in the Permian Basin, where it owns ~220,000 acres. Similar to another Fund holding, Texas Pacific Land Corp., it receives royalties from oil and gas produced on its land. It also sells water for the fracking of oil and gas wells and receives payments for the surface use of its land. LandBridge is at the forefront of bringing data center operators to the Permian Basin, given the area’s abundance of land, water, and low-cost natural gas. Since the Fund purchased a position, LandBridge’s stock price is up 130% through the end of the third quarter.”