5 Best Russell 2000 Stocks To Buy Now

2. Noble Corporation Plc (NYSE:NE)

Number of Hedge Fund Holders: 45

Noble Corporation Plc (NYSE:NE) is a global offshore drilling contractor that serves the oil and gas industry. The company offers contract drilling services through their fleet of mobile offshore drilling units, which include both floaters and jackups. Noble Corporation Plc (NYSE:NE) is one of the best Russell 2000 stocks to monitor. On July 11, the company declared a $0.30 per share quarterly dividend. The dividend is payable on September 14, to shareholders of record on August 17. 

According to Insider Monkey’s first quarter database, 45 hedge funds were bullish on Noble Corporation Plc (NYSE:NE), compared to 50 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest stakeholder of the company, with 3.45 million shares worth $136.4 million. 

ClearBridge Value Equity Strategy made the following comment about Noble Corporation Plc (NYSE:NE) in its Q4 2022 investor letter:

“As mentioned, we remain very positive on energy given the structural global shortage. However, with the cost structure of shale rising from higher services costs and well productivity falling, we made the decision to pivot from shorter-cycle shale production to longer-cycle conventional oil. We believe the current environment suggests that pricing power in energy services will continue to improve while the demand for offshore oil will increase. We invested in Noble Corporation Plc (NYSE:NE), in the energy sector, an offshore drilling contractor that targets ultra-deepwater and high-specification jack up markets, which we believe will be a major beneficiary of this shift. After emerging from bankruptcy caused by the recent severe downcycle, Noble has a recapitalized balance sheet moving into a positive pricing cycle that will drive dramatic growth in earnings and free cash flow. Like other parts of energy, the nightmare of the last cycle is reinforcing capital discipline and a focus on free cash flow rather than growth. We believe this subsequent longer duration cycle is not reflected in Noble’s current stock price, and long-term performance will be supported by growing shareholder returns from dividends and buybacks while maintaining a strong balance sheet.”