12 High Growth Low PE Stocks to Buy

10. Northern Oil and Gas Inc. (NYSE:NOG)

5-Year Revenue CAGR: 30.06%

Number of Hedge Fund Holders: 26

Forward P/E as of January 29: 8.47

Northern Oil and Gas Inc. (NYSE:NOG) is an independent energy company that engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties. The company’s competitive edge as one of the best high growth low PE stocks to buy stems from its unique business model. Unlike other oil and gas companies, it acquires minority stakes in leading operators’ premium oil and gas assets.

In return, Northern Oil and Gas Inc. (NYSE:NOG) leaves operations to other companies, avoiding excessive operational costs. Similarly, the company generates significant returns given the low operating costs. Over the past year, the company has focused on deploying capital to high-potential drilling assets, allowing it to enjoy a 30% compound annual growth rate on revenues.

Northern Oil and Gas Inc. (NYSE:NOG) has acquired nearly $5 billion worth of land and currently owns about 300,000 acres. It has also achieved industry-leading operational efficiency in spite of its substantial portfolio. Last year, it strengthened its portfolio of oil and gas-generating assets with the acquisition of XCL Resources for $519 million in partnership with SM Energy Company. Northern Oil and Gas’s strategic partnership aims to enhance its natural gas exposure and operational footprint in a key energy-producing region. Cash flow from operations was up by 9% in the third quarter of last year to $385.8 million. The company generated a record $177.1 million of free cash flow, allowing it to reward shareholders with a 4.43% dividend yield.