7 Worst Beaten Down Stocks to Invest In

3. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Current share price: $7.65

52 Week Range: $7.45 – $14.26

Year to date Gain as of October 1: – 28.87%

Number of Hedge Fund Holders: 32

Patterson-UTI Energy, Inc. (NASDAQ:PTEN), through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators. Its contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins.

The company has been under pressure due to high interest rates and inflation, forcing most oil and gas companies to trim their capital expenditure on new projects. However, with the Federal Reserve cutting interest rates, the oilfield services sector should see an uptick in activities.

In Q2 2024, the company reported $1.348 billion in total revenue, $11 million in net income, and $324 million in adjusted EBITDA. In contrast to earlier estimates of a slight improvement, it predicts a slight decline in third-quarter gross profit for Completion Services. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) also revealed a decrease in capital spending for 2024; from a previous estimate of less than $740 million, the company now plans to spend $700 million.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has made some major moves recently to strengthen its long-term prospects and growth metrics, one of which is its strategic alliance with ADNOC Drilling. PTEN will provide drilling and completion experience in the Middle East through a minority equity interest in Turn Well.

The partnership presents the company with a cost-effective means of leveraging the region’s non-traditional multi-year growth prospects. This strategic shift is especially significant because it enables Patterson-UTI Energy, Inc. (NASDAQ:PTEN) to expand its geographic reach outside its primary North American market. The expansion into the Middle East may offer protection against the volatility of the US land market and create new growth opportunities.

While trading at a price-to-earnings multiple of 7, which is a substantial discount compared to its peers, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) rewards investors with a 4.18% dividend yield. By the end of Q2 2024, 32 hedge funds had collectively invested $395 million in Patterson-UTI Energy, Inc. (NASDAQ:PTEN), according to Insider Monkey’s database.