11 Best Fundamentally Strong Penny Stocks to Buy Now

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1. Berry Corporation (NASDAQ:BRY)

Number of Hedge Fund Holders: 28

Berry Corporation (NASDAQ:BRY) is an independent upstream energy company engaged in the development and production of onshore oil reserves, primarily in California and the western United States. The company focuses on conventional, low-decline, long-lived oil assets, using thermal recovery techniques such as steam injection to enhance production. BRY also operates a well-servicing and ancillary equipment business that supports its own operations and third-party customers.

Berry Corporation (NASDAQ:BRY) delivered strong financial and operational results in 2024, generating $292 million in adjusted EBITDA, a 9% increase over 2023. The company maintained production levels at 25,400 barrels of oil equivalent per day, near the top of their guidance range. BRY has sustained total production levels over the past 6 years, outperforming the 35% decline in California statewide oil production during that period. The company achieved significant success with its thermal diatomite reservoir in California, unlocking the potential for 115 additional sidetrack wells over the next few years.

In Utah’s Uinta Basin, Berry Corporation (NASDAQ:BRY) is advancing its horizontal well development program, with initial wells showing promising results of 1,900-2,000 barrels of oil equivalent per day in peak production. The company has identified approximately 200 potential horizontal well locations in the Uinta Basin. BRY’s year-end 2024 total proved reserves were 107 million barrels of oil equivalent with a PV-10 value of $2.3 billion at SEC pricing. Looking ahead to 2025, management plans to sustain production YoY and drill approximately 50 gross wells, with increased capital allocation to Utah operations.

Overall Berry Corporation (NASDAQ:BRY) ranks first on our list of the 11 fundamentally strong penny stocks to buy now. While we acknowledge the potential of BRY as an investment, our conviction lies in the belief that 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 BRY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires

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