5 Best Affordable Stocks Under $10

3. Kosmos Energy Ltd. (NYSE:KOS)

Number of Hedge Fund Holders: 29

TTM PE ratio as of March 26: 13.07

Share Price as of March 26: $5.66

Kosmos Energy Ltd. (NYSE:KOS) is a Texas-based company that carries out deep-water oil production and exploration and gas development. The company’s production projects are located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, while the gas projects are located in offshore Mauritania and Senegal.

On February 26, Kosmos Energy Ltd. (NYSE:KOS) announced earnings for the fourth quarter of 2023. In the quarter, the non-GAAP EPS was $0.31, and revenue amounted to $508 million. The net production grew by 12 year-over-year to 66,000 barrels of oil equivalent per day.

Kosmos Energy Ltd. (NYSE:KOS) takes the third spot on our list of the best affordable stocks under $10 as the stock was part of 29 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $304.765 million. Maple Rock Capital is the top investor in the company and has a position worth nearly $60.192 million as of Q4, 2023. Additionally, the stock has a TTM PE ratio of 13.07 as of March 26.

Patient Capital Management stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its fourth quarter 2023 investor letter:

“Kosmos Energy Ltd. (NYSE:KOS) declined from the high seen at the end of September following energy prices lower. The company was also hit as they marginally increased CAPEX expectations and hinted at the potential for their first gas delivery out of Tortue being delayed to 2Q24 from 1Q. Kosmos is an exploration and production services company with assets in Africa. The company is differentiated in the Exploration & Production space because of its growth profile (+30% YoY in 2024), long reserve life (>20yrs, nearly double the sector average) and focus on liquified natural gas (LNG). While the market is focused on near-term risk of production delays, we believe it is ignoring the long-term value of the underlying assets. As we move into 2024, production should inflect higher, climbing 30% YoY, while CAPEX comes down, declining 20% YoY. Together this leads to attractive growth and free cash flow generating asset providing the company the ability to pay down their debt and to return capital. At these levels, the company will generate more than its current market cap in FCF over the next 5 years at $90 Brent prices. With the combination of gas-heavy reserves and inflecting cash flow generation, we think Kosmos is significantly undervalued and a potential acquisition target.”