1. Babcock & Wilcox Enterprises, Inc. (NYSE:BW)
Average Analysts Upside Potential as of October 25: 236.13%
Year-to-date gains: 61.56%
Number of Hedge Fund Holders as of Q2: 19
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) is a technology provider providing energy and emissions control solutions to industrial electrical utilities and municipalities. It is one of the unstoppable stocks that could make you richer as it has secured a string of substantial contracts that affirm strong demand for its solution. In the UK, it has landed an $8 million contract for a cooling system for a renewable energy facility. It has also inked a $25 million contract for upgrades and maintenance of a thermal plant in The US
Additionally, Babcock & Wilcox Enterprises, Inc. (NYSE:BW) has agreed to sell its Italy and Sweden-based assets for about $40 million. The sale is part of a divestment strategy that Babcock Wilcox Enterprises uses to reduce its long-term debt and improve its balance sheet.
In addition to new technologies like BrightLoopTM and ClimateBrightTM, the company intends to concentrate on its core portfolio of technologies, which includes thermal, renewable, and environmental solutions. In order to satisfy emissions reduction requirements while preserving dependable base load energy generation, Babcock & Wilcox Enterprises, Inc. (NYSE:BW) is also assisting its U.S. clients with coal-to-natural-gas conversions.
The company’s excellent operating performance propelled it into solid second-quarter results whereby revenues totalled $233.6 million, exceeding analyst expectations despite being lower than the previous quarter. Additionally, the operating income of $42.2 million and net income of $25.4 million both surpassed projections. Its year-to-date bookings of $383.1 million and implied bookings of $668.5 million, a 71% increase over the first half of 2023, are what make this cheap penny stock impressive.
While Babcock & Wilcox Enterprises, Inc. (NYSE:BW) is already up by about 62% for the year, analysts remain optimistic about its long-term prospects, with an average price target of $8, implying 236.13% upside potential as of October 25, 2024.
At Q2’s end, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, up from 14 in the first quarter of 2024. According to Insider Monkey’s hedge fund database, Aaron Weitman’s CastleKnight Management has the number one position in Babcock & Wilcox Enterprises Inc (NYSE:BW), worth close to $6.17 million, accounting for 0.3% of its total 13F portfolio.
While we acknowledge the growth potential of Babcock & Wilcox Enterprises, Inc. (NYSE:BW), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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