We recently published a list of 10 Best Geothermal Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Weatherford (NASDAQ:WFRD) stands against other best geothermal stocks to buy according to hedge funds.
Geothermal stocks are companies that use heat from the earth to generate electricity, heating, and cooling. This comprises companies in geothermal energy production, exploration, and technology development.
The geothermal market is growing rapidly. On April 2, 2025, Dandelion Energy, a prominent private company specializing in home geothermal heating and cooling, announced a partnership with one of the nation’s largest homebuilders to integrate geothermal systems into over 1,500 new homes in Colorado over the following two years. The program’s goal, which is among the biggest residential geothermal deployments in American history, is to standardize geothermal heating and cooling in new construction. When compared to air-source heat pumps, homeowners may anticipate saving almost $30 million over the next 20 years due to lower energy expenditures and better efficiency. According to a recent Department of Energy report, the widespread use of geothermal heat pumps could reduce the need for 24,500 miles of additional grid transmission lines, which is comparable to crossing the United States eight times. Overall, the collaboration highlights a growing trend toward sustainable homebuilding and lower carbon footprints in residential buildings.
Governor of Colorado Jared Polis stated:
“Geothermal energy – the heat beneath our feet – is a clean energy option that will help save Coloradans money and protect our state for future generations. I’m very excited that Dandelion is building on Colorado’s leadership on geothermal by connecting more than 1,500 Colorado homes to low-cost heating and cooling. It’s good for Coloradans, for our air quality, and our economy,”
As we look forward, according to the International Energy Agency’s report, geothermal energy, which now meets less than 1% of worldwide demand, is anticipated to supply up to 15% of global power by 2050, with an anticipated capacity of 800 GW and approximately 6,000 TWh per year. Advancements in drilling technology, comprising hydraulic fracturing and horizontal drilling, might unlock geothermal resources at depths greater than 3 km, hence extending the global potential. In 2023, more than 75% of global geothermal capacity was utilized, greatly outperforming wind (30%) and solar (15%) in terms of capacity factor. Investment in geothermal energy could surpass $1 trillion by 2035 due to decreased costs and oil and gas sector expertise. Government support may reduce prices by 80% by 2035, putting geothermal on equal ground with solar and wind. There are still major obstacles to overcome, such as the lack of qualified workers, environmental effects, and delays in obtaining permits. The success of geothermal energy depends on governments streamlining procedures, offering incentives, and encouraging research to fulfill the world’s expanding demand for electricity.
As per Deloitte’s report, rapidly maturing Enhanced geothermal systems (EGS) capable of providing 24/7 baseload electricity by accessing deep heat reservoirs are benefiting from federal funding and cross-sector investment in technological advances such as new drilling techniques and extreme heat operations, as well as bipartisan support to accelerate projects. Technology companies are collaborating with developers to produce geothermal electricity, as well as with utilities to facilitate EGS deployments by offering a clean transition tariff to cover the costs and risks of implementing a new technology. Meanwhile, a utility inked the largest geothermal power purchase agreement, reaching 320 MW, to meet a public utility commission’s need to obtain carbon-free power 24 hours a day, seven days a week.
Methodology:
We sifted through online rankings to form an initial list of 10 Geothermal stocks. From the resultant dataset, we chose the top 9 stocks most favored by hedge funds, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have also included a pure-play private geothermal company and ranked it 10th on our list.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Weatherford (NASDAQ:WFRD)
Number of Hedge Fund Investors: 36
Weatherford (NASDAQ:WFRD) offers a wide range of oilfield services in international markets for various types of oilfields. The company is the global market leader for artificial lift and tubular running services. Other important product lines include cementing materials, directional drilling, and wireline evaluation. It is one of the bigger oilfield services companies in an otherwise highly fragmented market.
Weatherford (NASDAQ:WFRD) is among the Best Geothermal Stocks. It specializes in geothermal energy, using advanced liner systems built for harsh wellbore conditions. Its Drilling-with-Liner technology simplifies operations by integrating drilling and casing, saving time and money. This method also improves wellbore stability, which is essential for high-temperature, high-pressure geothermal conditions.
In the fiscal year 2024, the company’s adjusted EBITDA margins exceeded 25%, the best full-year margin in more than 15 years. Weatherford (NASDAQ:WFRD) generated $524 million in adjusted free cash flow, showing a high cash generation ability. In 2024, the company’s international business expanded substantially in the Middle East, North Africa, and Asia areas, growing by 10% on a full-year basis. Its Well Services product line has increased by more than 50% over the last three years, proving a significant growth vector with low capital expenditure.
The firm declared two quarterly dividends of $0.25 per share and repurchased roughly $99 million of shares in the second half of 2024.
Rewey Asset Management stated the following regarding Weatherford International plc (NASDAQ:WFRD) in its Q4 2024 investor letter:
“We added shares of Weatherford International plc (NASDAQ:WFRD) in the quarter, a $5.2 billion market cap global provider of oil field services and equipment. We see significant neglect and undervaluation in shares of WFRD, a position that shows a 59.2% upside to our AFV price target of $114 per share, a level that would still be 15.6% below its July 16th, 2024 high of $135.
Weatherford sold off in concert with the broader energy group in 4Q24, as investors fretted about the risks of slowing global oilfield spending in 2025, the potential for more drilling to push down oil prices under a Trump administration andtax loss selling by investors who purchased shares near summer highs. In our view, the current valuation level ignores the significant financial and operational improvement completed since its 2019 restructuring and the strong long-term revenue growth prospects for its globally diversified and technologically leading offerings…” (Click here to read the full text)
Overall, WFRD ranks 8th on our list of best geothermal stocks to buy according to hedge funds. While we acknowledge the potential of ethanol companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WFRD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
