10 Oversold Penny Stocks To Invest In Now

2. Kosmos Energy Ltd. (NYSE:KOS)

Year to Date Gain as of October 25: -40.27%

Forward Price to Earnings Ratio: 4.02

Number of Hedge Fund Holders: 25

Dallas Texas based Kosmos Energy Ltd. (NYSE:KOS) is an energy company engaged in oil and gas exploration, development, and production. While it is one of the companies well positioned to benefit from higher oil and gas prices, it has dropped 40.27% year to date.

Kosmos Energy Ltd. (NYSE:KOS) remains one of the best-oversold penny stocks to invest in, as it has made impressive strides to meet its production growth target of 50%. While producing 62,100 barrels of oil daily, it marks a 7% year-over-year increase, with the company able to sell 65,400 barrels daily. Notwithstanding project setbacks and reduced output from Ghana’s Jubilee field, the company is on course to reach a year-end production goal of 90,000 barrels daily.

Over the past 12 months, Kosmos Energy Ltd. (NYSE:KOS) has turned a profit backed by robust revenue growth of 16.34% over the past 12 months and a startling 64.99% quarterly revenue growth in Q2 2024. These numbers imply that although the stock price has been under pressure to decline, the underlying company is expanding significantly.

Additionally, Kosmos Energy Ltd. (NYSE:KOS) plans to produce a substantial amount of free cash flow, estimated to be between $100 million and $150 million every quarter.  In accordance with a disciplined capital framework, this cash flow will be used to pay down debt and make investments in future expansion.  With capital expenditure estimated at the lower end of the full-year guidance range, the company’s capital expenditures for the year are anticipated to be approximately $750 million.

According to Insider Monkey’s database, 25 out of 912 hedge funds hold stocks in Kosmos Energy Ltd. (NYSE:KOS). Patient Capital Management, spearheaded by Samantha Mclemore, holds the largest stake in the company, possessing 9 million shares valued at approximately $50.33 million.