10 Stocks Under $10 With High Potential

7. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Share Price: $7.65

Analyst Upside Potential: 69.93% 

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a prominent company that provides essential services for the oil and gas extraction industry. The company helps companies in drilling by offering drilling rigs and crew to operate the project. The company specializes in using technology that allows drilling at different angles allowing access to resources that are otherwise not extractable.

The company has merger deals with  NexTier Completion Solutions to have a portfolio of industry-leading drilling services. Moreover, it has also acquired Ulterra Drilling Technologies which not only puts the company in a leading position in PDC bits but also helps broaden the international footprint.

The company has a significant presence in North America. As per the company’s September investor presentation, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) stands as the 3rd largest offer of sale in the North American region by revenue.

During the second quarter of 2024, the company reported revenue of $1.3 billion and a net income of $11 million indicating its strong financial position in the market. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) also reported significant cash generation from operations. Its cash from operations amounted to $563 million.

Recently, the company announced signing an agreement with ADNOC Drilling to formalize its joint venture in the UAE. This will expand its presence in the Middle East region. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is one of the best stocks under $10 with high potential. Analysts are expecting the stock price to jack up by around 70% during the year.

Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in its fourth quarter 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.”