We recently published a list of 10 Oversold Stocks to Buy in 2025 Amid Inflation Fears. In this article, we are going to take a look at where Noble Corporation plc (NYSE:NE) stands against other oversold stocks to buy in 2025 amid inflation fears.
The stock market continues to face significant volatility, with major indices continuing their decline from last week. The S&P 500 is down nearly 2%, while the Nasdaq is equally struggling at over 2.5% in the red.
The implementation of new tariffs had already spooked the market. However, it was dealt an additional blow as the core Personal Consumption Expenditures index reading came in hotter than expected. Inflation and recession concerns are dominating the market, but this also presents an opportunity for outperformance.
Stocks that are oversold as a result of the current dip present a great opportunity for outperformance in 2025. We decided to come up with a list of such stocks.
To ensure that these stocks were suitable for a bear market, were it to persist, we also added an additional criterion of a strong dividend yield so that investors can accumulate dividends while they wait for a market turnaround. For this list, we only considered stocks with a market cap of at least $2 billion that are down considerably since the start of the year.
An aerial view of a Noble Holding Corporation plc drilling facility in Sugar Land,Texas.
Noble Corporation plc (NYSE:NE)
Noble Corporation plc (NYSE:NE) is an offshore drilling contractor for the oil and gas industry. It offers contract drilling services and operates drilling rings. The company’s stock is currently out of favor among investors, falling 23% this year.
According to 18 different analyst ratings, Noble Corporation (NYSE:NE) has the highest target price of $44, which means it has a potential upside of 81% from the current levels if the bull scenario holds true. The stock is currently trading 19% below the lowest Wall Street price target of $29. With every Wall Street analyst bullish on the stock at current levels, there’s no reason not to like the stock. However, investors should note that there is some risk involved as the price targets are elevated because of the 50% dip in share price over the last year.
Noble Corporation (NYSE:NE) expects revenue between $3.25 billion to $3.45 billion in 2025. Adjusted EBITDA is projected within a range of $1.05 billion to $1.15 billion.
CFO Richard Baker offered insight into the company’s full-year prospects:
“Despite a more muted near-term outlook, we still expect 2025 to represent a nice step up in free cash flow compared to last year, facilitated in part by lower CapEx following the peak of the five-year SPS cycle in 2023 and 2024 for both the legacy diamond and Noble fleet.”
Going by the above, one can say with a fair amount of certainty that the management is confident of sustaining the rather high dividend yield of 8%.
Overall, NE ranks 8th on our list of oversold stocks to buy in 2025 amid inflation fears. While we acknowledge the potential of NE as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
