In this piece, we will take a look at eight best stocks under $10 to invest in now.
Investing in stocks priced under $10 can be an appealing strategy for investors looking for growth opportunities without a significant upfront investment. Such stocks, often referred to as penny stocks or small-cap stocks, can offer high returns but also come with greater risk and volatility compared to blue-chip stocks. However, when chosen carefully based on strong fundamentals, solid management, and positive market sentiment, these investments can yield substantial gains over the long term.
According to BlackRock’s Q4 2024 Equity Market Outlook, there are compelling reasons to consider small caps as part of a diversified portfolio. The firm’s analysis highlights that while the economy continues to face uncertainty, this does not necessarily equate to poor stock performance. Market volatility can present investors with an opportunity to buy high-quality stocks at discounted prices, particularly when driven by sentiment rather than company fundamentals.
Fundstrat’s Tom Lee is also bullish on small caps, we covered this in our article about the 10 Best Young Stocks To Buy Now, here’s an excerpt from it:
“As for small-cap stocks represented by the Russell 2000 index, Lee acknowledged some profit-taking after a strong week but maintained that such fluctuations are typical during bottoming phases. He drew parallels to previous market recoveries, such as energy stocks in 2021, suggesting that while current movements may feel erratic, they signal a multi-year growth opportunity for small caps.”
The past year has seen several “mini rolling recessions,” starting in sectors like technology and housing, as the global economy grapples with a post-pandemic recalibration. Yet, the stock market has shown resilience and adaptability, with many companies adjusting to what can be seen as a return to more stable economic conditions. Volatility, though unsettling, can be a favorable condition for seasoned investors who can spot value opportunities.
In the current environment, where the Federal Reserve’s policy decisions and upcoming elections are expected to further influence volatility, it’s essential for investors to look beyond temporary market disruptions and focus on the fundamentals of individual companies. Historically, the stock market has been a forward-looking mechanism that attempts to predict recessions with mixed success. Market volatility can present investors with an opportunity to buy high-quality stocks at discounted prices, particularly when driven by sentiment rather than company fundamentals.
One key takeaway is that large-cap stocks may present greater opportunities compared to both mega-caps and small-cap stocks. This perspective is based on observations from the third quarter when concerns over a slowing economy led to market turbulence. However, these concerns were largely rooted in sentiment rather than the actual financial health of most companies.
Moreover, volatility can be a double-edged sword. On one hand, it can trigger sell-offs due to investor fear or uncertainty, but on the other, it can provide strategic buying opportunities for fundamentally sound stocks trading at lower prices. Investors should consider adopting a selective approach during these periods, ensuring that they have a deep understanding of the companies in which they invest. This strategy can instill confidence and conviction when markets experience short-term volatility.
Historically, market corrections, defined as declines of 10% or more, are not uncommon. In fact, over the past 35 years, corrections have occurred in 20 years, with an average drawdown of 14%. Yet, during this period, the S&P 500 Index has delivered an average annual return of 11%. Investors who stay the course through these corrections have often been rewarded with strong returns as the market eventually rebounds.
The impact of Federal Reserve rate cuts on different stock categories is also an important consideration. Equity markets generally perform well when the Fed initiates rate cuts, particularly in the absence of a recession. Historical data shows that in the year following the first rate cut of a cycle, large-cap stocks tend to outperform small-cap stocks, with high-quality and low-beta stocks also being strong performers. This trend is observed two and three years after the start of a rate-cutting cycle, suggesting that investors might consider shifting focus to these segments as the Fed’s monetary policy evolves.
Sector performance is another crucial area to explore. Sectors such as healthcare and consumer staples have historically outperformed in the year following the first rate cut of a cycle, driven by their defensive nature and consistent demand. Meanwhile, cyclical sectors like financials typically gain momentum as the cycle progresses and the economy enters a recovery phase.
While every market cycle is unique, the healthcare sector is seen as a potential outperformer over the long term, supported by secular tailwinds such as an aging population and rising health needs. Furthermore, the technology sector, driven by innovation in artificial intelligence and cloud computing, is also poised for long-term growth despite recent setbacks. The integration of AI and machine learning into various industries has created new revenue streams, enhancing operational efficiency and profitability for companies involved.
As the stock market navigates these complexities, investors should maintain a balanced perspective and not shy away from exploring undervalued opportunities. Stocks under $10, while inherently riskier, can still provide substantial upside when identified through rigorous analysis and an understanding of industry trends. For example, some companies in sectors like renewable energy, biotechnology, and digital transformation have shown the potential to scale rapidly from a lower base, driven by strong business models and favorable macroeconomic factors.
Furthermore, sectors that are less sensitive to economic downturns, such as utilities and essential consumer goods, also present interesting opportunities for investing in lower-priced stocks. These sectors tend to exhibit stable revenue streams, which can help cushion portfolios during periods of heightened market volatility. For investors with a higher risk tolerance, energy and tech stocks could offer substantial gains, especially as new innovations and infrastructure developments continue to take shape.
Ultimately, the key to successfully investing in lower-priced stocks lies in adopting a diversified approach, focusing on sectors that demonstrate long-term resilience and growth potential. By analyzing company fundamentals, industry position, and market sentiment, investors can better position themselves to capture opportunities that arise from market fluctuations.
vichie81/Shutterstock.com
Our Methodology
For this article, we used the Finviz screener and identified 20 stocks with market capitalizations of over $2 billion, having Buy or better rating from analysts, with share prices under $10, as of September 27. Next, we examined Insider Monkey’s data on 912 hedge funds as of Q2 2024. We narrowed down our list to 8 stocks most widely held by institutional investors and ranked them in ascending order of the number of hedge funds that have stakes in them as of Q2 of 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
08. Payoneer Global Inc. (NASDAQ:PAYO)
Number of Hedge Fund Holders: 35
Share Price as of September 27: $7.65
Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company offering a payment infrastructure platform that provides customers with a comprehensive multi-currency account to manage their accounts receivable and payable. The company’s services include cross-border payments, working capital, risk management, and virtual and physical MasterCard cards. Payoneer Global Inc. (NASDAQ:PAYO) platform offers extensive payment options, bank-grade security, and support for small and medium-sized businesses (SMBs) in 190 countries. Founded in 2005 and headquartered in New York, Payoneer Global Inc. enables businesses to navigate the complex landscape of global payments.
In its Q2 2024 earnings report, Payoneer Global Inc. (NASDAQ:PAYO) demonstrated strong financial performance driven by strategic growth initiatives. Total revenue for the quarter was $240 million, reflecting a 16% year-over-year increase. Excluding interest income and adjusting for non-volume fees, revenue rose by 21%, indicating consistent momentum across its operations. The company’s ability to drive revenue growth was supported by a 22% increase in transaction volume, with B2B volume growing by an impressive 40% for the fourth consecutive quarter. This growth was fueled by Payoneer’s continued expansion in higher take-rate regions, such as APAC, EMEA, and Latin America.
Payoneer Global Inc. (NASDAQ:PAYO) average revenue per user (ARPU) also showed positive trends, with a 27% increase compared to the prior year. This was achieved through the successful implementation of pricing strategies and improved product adoption. The company’s strategic focus on the B2B segment, which now accounts for a significant portion of its growth, has led to higher customer retention and increased cross-sell opportunities.
Adjusted EBITDA reached a record $73 million, with a 30% margin, highlighting the company’s strong expense discipline and efficient operations. Payoneer Global Inc. (NASDAQ:PAYO) management raised its full-year guidance for revenue and EBITDA, citing continued momentum and successful integration of recent acquisitions, such as Squad.
In terms of institutional interest, the number of hedge funds holding the stock stood at 35 as of Q2 2024, compared to 34 in the previous quarter. This shows that Payoneer Global Inc. (NASDAQ:PAYO) remains a compelling investment due to its strong financial performance, innovative product offerings, and growing market presence in the global payments industry.
07. The Goodyear Tire & Rubber Company (NASDAQ:GT)
Number of Hedge Fund Holders: 36
Share Price as of September 27: $8.61
The Goodyear Tire & Rubber Company (NASDAQ:GT), founded in 1898 and headquartered in Akron, Ohio, is a prominent player in the global tire industry. The company manufactures, distributes, and sells a diverse range of tires for automobiles, trucks, buses, aircraft, and specialty equipment. It markets its products under well-known brands such as Goodyear, Cooper, and Dunlop and operates through a vast network of retail outlets and online platforms.
In the second quarter of 2024, The Goodyear Tire & Rubber Company (NASDAQ:GT) demonstrated notable financial resilience, despite facing industry headwinds. The company achieved a segment operating income (SOI) of $339 million, representing a 7.4% margin—almost three times higher compared to the same period last year. This improvement was driven by strong price and mix performance relative to raw materials, contributing $99 million in favorable net pricing. Moreover, raw materials were a significant tailwind, adding $158 million to the company’s profitability.
Earnings per share (EPS) on an adjusted basis rose by $0.53 year-over-year, showcasing effective cost management and strategic pricing adjustments. The Goodyear Tire & Rubber Company (NASDAQ:GT) focus on high-margin segments and SKU rationalization under its Goodyear Forward Plan continues to bear fruit. This plan aims to improve operational efficiency, particularly by eliminating lower-margin, low-value products, while emphasizing premium segments.
The Americas region was a standout performer, delivering a remarkable $241 million in segment operating income. This growth was fueled by cost control measures, net pricing improvements, and volume gains in the 18-inch and larger tire segments. However, challenges remain in the smaller rim sizes due to aggressive pricing from low-end importers. Goodyear’s focus on reducing complexity and its investments in high-value segments are expected to bolster its market position in the coming quarters.
The Goodyear Tire & Rubber Company (NASDAQ:GT) debt remains manageable, with net debt holding steady at $7.7 billion. Cash flow was impacted by working capital changes but should normalize as inventory levels adjust. Additionally, the number of hedge funds holding Goodyear increased to 36 in Q2 2024 from 35 in the previous quarter, indicating growing institutional confidence in the stock. With continued focus on margin expansion, operational efficiency, and strategic pricing, The Goodyear Tire & Rubber Company (NASDAQ:GT) appears well-positioned to weather current industry challenges and deliver sustainable growth, making it an attractive investment opportunity among stocks under $10.
06. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 37
Share Price as of September 27: $9.53
Kinross Gold Corporation (NYSE:KGC) is a gold mining company with operations in the United States, Brazil, Chile, Canada, and Mauritania. The firm is involved in acquiring, exploring, and developing gold properties and is engaged in extracting and processing gold and silver. Founded in 1993 and headquartered in Toronto, Canada, Kinross Gold Corporation (NYSE:KGC) operates several key projects, including the Fort Knox mine in Alaska, the Paracatu mine in Brazil, and the Tasiast mine in Mauritania.
In Q2 2024, Kinross Gold Corporation (NYSE:KGC) reported strong financial results that highlight the company’s solid operational performance and strategic initiatives. The company’s operating margins grew by over 20% compared to the previous quarter, driven by higher production and lower costs at its primary mines. As a result, free cash flow more than doubled to $346 million in Q2, totaling nearly $500 million for the first half of 2024. Additionally, Kinross produced 535,000 ounces of gold in the second quarter, with an average cost of sales just over $1,000 per ounce, demonstrating efficient production capabilities.
One of Kinross Gold Corporation (NYSE:KGC) standout assets, the Tasiast mine, had an exceptional quarter, generating the highest margin in the company’s portfolio, which significantly contributed to cash flow. The Paracatu mine also continued its consistent performance, with robust throughput and recoveries. In total, Kinross is on track to achieve its 2024 production guidance of 2.1 million ounces, backed by its effective cost management and strategic investments in development projects.
Moreover, the company is making significant progress in advancing its development projects. At the Round Mountain mine, development activities and expansion projects are progressing as planned, and the Phase X open pit development is expected to support production growth in 2025. Similarly, Kinross Gold Corporation (NYSE:KGC) achieved a milestone with its first gold pour at the Manh Choh project in Alaska, which is expected to deliver strong production at attractive costs for several years.
The company’s financial strength is also notable, with adjusted earnings of $0.14 per share and a substantial cash flow position. Hedge fund sentiment towards Kinross Gold Corporation (NYSE:KGC) has also improved, with 37 hedge funds holding the stock as of Q2 2024, compared to 31 in the previous quarter, reflecting increased confidence in its growth potential. With a focus on expanding production, optimizing costs, and delivering strong cash flow, Kinross Gold Corporation (NYSE:KGC) remains an attractive investment under $10.
05. Hudbay Minerals Inc. (NYSE:HBM)
Number of Hedge Fund Holders: 38
Share Price as of September 27: $9.26
Hudbay Minerals Inc. (NYSE:HBM) is a diversified mining company that engages in the exploration, development, operation, and optimization of properties across North and South America. The company produces copper concentrates containing gold, silver, and molybdenum, as well as zinc, molybdenum concentrates, and silver/gold doré. Hudbay Minerals Inc. (NYSE:HBM) flagship asset is the Constancia mine in southern Peru, while it also operates in Manitoba, Canada, and British Columbia. The company was founded in 1927 and is headquartered in Toronto, Canada.
Hudbay Minerals Inc. (NYSE:HBM) recent second-quarter 2024 financial results demonstrate a promising outlook for the stock despite missing on earnings expectations. The company reported a loss per share of $-0.04501, falling short of analysts’ estimates of $0.06. However, Hudbay Minerals Inc. (NYSE:HBM) continues to show operational resilience and solid execution across its diverse asset portfolio.
In the second quarter, Hudbay Minerals Inc. (NYSE:HBM) achieved consolidated copper production of 29,000 tons and consolidated gold production of 59,000 ounces, aligning with its quarterly production targets for 2024. The company reaffirmed its full-year guidance, with copper production expected to be slightly below the midpoint of the range, while gold production is anticipated to surpass the midpoint, thanks to strong performance at the New Britannia Mill in Manitoba. This consistent production level, coupled with higher byproduct credits, allowed Hudbay Minerals Inc. (NYSE:HBM) to reduce its consolidated cash cost guidance to $0.90-$1.10 per pound of copper, down from the previous range of $1.05-$1.25.
Hudbay Minerals Inc. (NYSE:HBM) financial health has also seen significant improvement. The company generated $30 million in free cash flow during the quarter, maintaining its trend of positive cash flow generation. Over the last twelve months, Hudbay has produced nearly $400 million in free cash flow. Additionally, Hudbay’s net debt reduced by over $550 million during the past year, and its net debt to adjusted EBITDA ratio dropped to 0.8x from 2.9x a year ago. This deleveraging effort enhances its balance sheet flexibility, positioning the company to advance key growth initiatives.
As of Q2 2024, 38 hedge funds held positions in Hudbay Minerals Inc. (NYSE:HBM), up from 31 in the previous quarter, reflecting increased institutional interest. Given the company’s strong asset base, cost management, and improving financial metrics, Hudbay Minerals Inc. remains a compelling investment under $10 per share.
L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:
“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”
04. Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 42
Share Price as of September 10: $4.3
Transocean Ltd. (NYSE:RIG) is a leading provider of offshore contract drilling services for oil and gas wells worldwide. The company offers mobile offshore drilling rigs, related equipment, and work crews to serve its clients, which include integrated energy companies, government-controlled energy firms, and independent energy companies. The firm operates a robust fleet of ultra-deepwater and harsh environment floaters, making it a prominent player in the offshore drilling industry. Founded in 1926, Transocean is headquartered in Steinhausen, Switzerland.
As of the second quarter of 2024, Transocean Ltd. (NYSE:RIG) was held by 42 hedge funds, a slight decrease compared to 46 in the previous quarter. Despite this, the company’s financial performance remains strong, driven by a combination of increased day rates and higher contract duration.
In Q2 2024, Transocean Ltd. (NYSE:RIG) reported adjusted EBITDA of $284 million on revenues of $861 million, reflecting an adjusted EBITDA margin of approximately 33%. This strong performance was primarily due to an impressive revenue efficiency of 97%, demonstrating the company’s operational reliability and excellence. Transocean Ltd. (NYSE:RIG) ability to maintain high revenue efficiency amid mobilizing nearly 40% of its active fleet worldwide is a testament to its strong execution and operational capabilities.
Transocean Ltd. (NYSE:RIG) recent contract wins underscore its competitive positioning in the industry. The company secured several high-value contracts, including a two-well contract for its Deepwater Atlas at a leading rate of $580,000 per day, and a three-year contract for its Deepwater Invictus at a rate of $485,000 per day. The firm’s fleet is now over 90% committed through the end of 2025, which positions it well to capture further market opportunities as global offshore drilling investments are projected to grow significantly.
With robust cash flows from these new contracts, Transocean Ltd. (NYSE:RIG) is well-positioned to reduce its leverage, enhancing its financial health. Additionally, the company’s strategic focus on deepwater and harsh environment markets, where demand is expected to grow, further solidifies its bullish outlook. Overall, Transocean Ltd. (NYSE:RIG) strong financial metrics, extensive contract backlog, and positive industry dynamics make it an attractive stock under $10 for investors seeking exposure to the oil and gas drilling sector.
03. Alight, Inc. (NYSE:ALIT)
Number of Hedge Fund Holders: 42
Share Price as of September 27: $7.27
Alight, Inc. (NYSE:ALIT) is a leading provider of cloud-based integrated digital human capital and business solutions, serving a global clientele through its Employer Solutions and Professional Services segments. The company offers a variety of services including employee wellbeing, benefits administration, healthcare navigation, and consulting. The company’s Alight Worklife platform enhances employee engagement, helping organizations create a high-performance culture. As of Q2 2024, Alight was held by 42 hedge funds, a slight decline from 44 hedge funds in the previous quarter, indicating sustained institutional interest in the stock.
During its Q2 2024 earnings call, Alight, Inc. (NYSE:ALIT) reported solid financial performance, highlighting transformational achievements. Alight’s divestiture of its payroll and professional services business has enhanced its financial profile, boosting gross margins by 350 basis points to over 40% and raising adjusted EBITDA margins from 21.7% to 25%. The company also completed its two-year cloud migration program, expected to generate $75 million in annual run rate cost savings, contributing to margin expansion.
A key highlight from the earnings call was the reduction of Alight, Inc. (NYSE:ALIT) net leverage to 2.8x on a trailing twelve months adjusted EBITDA basis, thanks to the retirement of $740 million in debt. This reduction positions the company with greater financial flexibility. The company also announced $155 million in share repurchases, which will retire over 3% of its outstanding shares, indicating management’s confidence in Alight’s future growth.
Financial metrics underscore Alight, Inc. (NYSE:ALIT) strength. Total revenue for Q2 2024 was $550 million, and adjusted gross profit stood at $219 million with an adjusted gross margin of 39.8%. Adjusted EBITDA came in at $128 million, reflecting a margin of 23.3%, which improved sequentially. Additionally, the company’s annual recurring revenue (ARR) bookings increased by 9% in the first half of 2024, supported by new contracts with large clients like UPS, Wayfair, and American Honda Motor Company.
With long-term contracts representing over 90% of total revenue, Alight, Inc. (NYSE:ALIT) expects stable revenue growth of 4% to 6% annually. The company’s robust revenue model, strong margins, and cost efficiencies make Alight, Inc. (NYSE:ALIT) an attractive stock under $10 to consider for long-term investment.
Polen U.S. Small Company Growth Strategy stated the following regarding Alight, Inc. (NYSE:ALIT) in its Q2 2024 investor letter:
“Alight, Inc. (NYSE:ALIT) is a benefits administration outsourcing business serving large enterprise companies, including 70% of the Fortune 100.3 Based on our analysis, the core business is a stable, low-churn, and generally sticky business, albeit more slowly growing. That said, over the last several years, this has evolved as the company has adopted a faster-growing software-enabled cloud strategy. Overall, we think the business is performing well despite headwinds from slower demand given the macro environment uncertainty. Earlier this year, the company announced the decision to sell its payroll and professional services business. While initially well received by the markets, this has ultimately created some uncertainty about the profile and growth of the core business. We trimmed our position while we continue to review the investment.”
02. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 48
Share Price as of September 27: $8.4
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a leading global media company known for its extensive portfolio of entertainment, sports, and news assets. The company’s recent Q2 2024 earnings report showcased promising growth, particularly in its direct-to-consumer segment, driven by strategic initiatives and global expansion efforts. Warner Bros. Discovery, Inc. (NASDAQ:WBD) added 3.6 million new subscribers in Q2 2024, indicating strong demand for its streaming service, Max. This growth builds on the 2 million subscribers added in the previous quarter, pushing its total subscriber base to new heights.
The company’s financial performance in Q2 was marked by revenue stability and improved profitability. Adjusted EBITDA came in strong, with positive momentum setting Warner Bros. Discovery, Inc. (NASDAQ:WBD) up to achieve over $1 billion in EBITDA by 2025. Revenue from the direct-to-consumer segment was a standout, driven by international expansion and strategic partnerships. Advertising revenue also showed resilience, reflecting a 50% year-over-year increase in ad sales for Max, demonstrating the platform’s ability to attract advertisers despite broader market headwinds.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) successful execution of the 2024 Summer Olympics broadcast strategy in Europe is a key highlight. The company capitalized on its multi-platform presence, broadcasting the event through Max, Discovery+, and Linear TV channels. This strategy paid off significantly, with over 141 million people engaging across its platforms. The Olympics not only boosted viewership but also led to a significant increase in subscriber growth for the company’s streaming service.
Additionally, the company’s focus on expanding its footprint in key international markets is another positive catalyst. Max is now available in 65 international markets, with plans to enter more regions in the coming quarters, including major markets like Australia, Japan, and the UK. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is leveraging its strong global infrastructure and local content to drive growth, setting the stage for long-term value creation.
Despite a decline in the number of hedge fund holders from 55 in Q1 2024 to 48 in Q2, Warner Bros. Discovery, Inc. (NASDAQ:WBD) remains an attractive investment due to its improving fundamentals and strategic execution. Its continued focus on global expansion, content diversification, and direct-to-consumer growth positions the stock as a compelling buy under $10 for investors looking to capitalize on the company’s growth potential.
01. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 49
Share Price as of September 27: $7.11
Southwestern Energy Company (NYSE:SWN), an independent energy firm, specializes in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) within the United States. The company operates through two segments: Exploration and Production, and Marketing. It primarily develops unconventional gas and oil reservoirs in key U.S. regions, including Pennsylvania, West Virginia, Ohio, and Louisiana. Additionally, Southwestern Energy Company (NYSE:SWN) markets and transports natural gas, oil, and NGLs, catering to LNG exporters, energy firms, utilities, and industrial customers. Established in 1929, the company is headquartered in Spring, Texas.
In Q2 2024, Southwestern Energy Company (NYSE:SWN) recorded a net loss of $608 million or ($0.55) per diluted share. This figure, however, includes non-recurring items such as the company’s full-cost ceiling test impairment. Adjusted for these impacts, Southwestern’s adjusted net income stood at $113 million, or $0.10 per diluted share, reflecting a solid operational performance. The company’s adjusted EBITDA came in at $413 million, showcasing its strong ability to generate cash flow from core operations despite the volatile commodity price environment.
Southwestern Energy Company (NYSE:SWN) production metrics for Q2 2024 were also noteworthy, with total net production reaching 379 Bcfe, translating to an impressive daily average of 4.2 Bcfe. This output includes 3.6 Bcf of gas and 101 MBbls of liquids per day. During the quarter, Southwestern invested $430 million in capital, which facilitated the drilling of 30 wells, the completion of 23 wells, and the placement of 22 wells into sales. The company’s proactive adjustment of its production activities in response to changing commodity prices underscores its operational agility.
As of June 30, 2024, Southwestern Energy Company (NYSE:SWN) had a total debt of $4.2 billion, with a net debt to adjusted EBITDA ratio of 2.1x, highlighting a manageable leverage profile. The firm’s weighted average realized price for Q2 2024 was $1.70 per Mcfe, excluding derivatives, which increased to $2.35 per Mcfe when considering derivative impacts, largely due to a favorable movement in liquids prices.
While we acknowledge the potential of SWN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SWN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
