10 Stocks with Biggest Upside Potential According to Hedge Funds

3) Weatherford International plc (NASDAQ:WFRD)

Average Upside Potential: 64.30%

Number of Hedge Fund Holders: 43

Weatherford International plc (NASDAQ:WFRD) is an energy services company, which offers equipment and services for the drilling, evaluation, completion, and natural gas wells worldwide.

Despite facing challenges, Weatherford International plc (NASDAQ:WFRD) introduced a shareholder return program, including a $1 per share annual dividend and a $500 million share buyback over 3 years.

Wall Street analysts remain optimistic about its strategic acquisition of Datagration Solutions Inc. They believe that this acquisition should enhance Weatherford International plc (NASDAQ:WFRD)’s digital offerings and amplify the capabilities of existing platforms. The move is focused on improving decision-making throughout the well lifecycle and streamlining operating efficiencies across the Weatherford International plc (NASDAQ:WFRD)’s enterprise. The company is expected to continue to maintain a strong focus on margin and cash flow growth.

Weatherford International plc (NASDAQ:WFRD) continues to target a 30% return on invested capital and is focusing on net working capital efficiency and on reducing interest costs. The company is optimistic about the international and offshore market outlook. Also, it sees significant potential for organic growth and value creation. The company’s overall long-term growth is expected to be aided by successful pricing and market share strategies.

Weatherford International plc (NASDAQ:WFRD)’s top management anticipates improved free cash flow conversion with the help of efficiencies and lower interest costs. Barclays increased its price objective from $160.00 to $165.00, giving an “Overweight” rating on 25th July. Notably, 43 hedge funds held stakes in Weatherford International plc (NASDAQ:WFRD) at the end of Q2 2024, as per Insider Monkey’s database of 912 hedge funds.