14 Best Affordable Stocks to Buy According to Hedge Funds

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4. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Holders: 80

Share Price as of March 22: $40.99

P/E Ratio as of March 22: 13.18

Schlumberger Limited (NYSE:SLB) ranks 4th on our list of the best affordable stocks. SLB is a global technology provider for the energy industry, offering services across four business segments – Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company specializes in field development, hydrocarbon production, and carbon management, while also integrating energy systems.

On December 24, 2024, Stifel maintained a Buy rating on Schlumberger Limited (NYSE:SLB) but lowered its price target from $60 to $59. The firm views Schlumberger as a strong global player with solid free cash flow and shareholder returns, calling it a reliable, high-quality investment.

In 2024, Schlumberger Limited (NYSE:SLB) managed to grow revenue by 10% and adjusted EBITDA by 12%. The company generated $3.99 billion in free cash flow for the year, returned $3.27 billion to shareholders, and cut net debt by $571 million. International revenue jumped 12%, with record growth in the Middle East & Asia, up 18% year-over-year, and 13% year-over-year gains in Europe & Africa, partly due to the Aker subsea acquisition. SLB is focused on expanding margins and increasing shareholder returns, approving a 3.6% dividend hike and a $2.3 billion share buyback. The company aims to raise total shareholder returns from $3.3 billion in 2024 to at least $4 billion in 2025.

According to Insider Monkey’s Q4 data, 80 hedge funds owned stakes in Schlumberger Limited (NYSE:SLB), compared to 65 funds in Q3. Jean-Marie Eveillard’s First Eagle Investment Management was the largest stakeholder of the company, with 27.8 million shares valued at over $1 billion.

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