We recently compiled a list of the 7 Best Under The Radar Stocks to Buy According to Analysts. In this article, we are going to take a look at where Permian Resources (NYSE:PR) stands against the other under the radar stocks.
The Need to Address the National Debt, Deficit, and Tariffs
Billionaire investor and entrepreneur Mark Cuban recently shared his thoughts on the current state of the economy, politics, and the upcoming presidential election. In his interview on CNBC on September 26, Cuban expressed his concerns about the national debt and deficit, stating that neither candidate addressed these critical issues. He believes the country needs to come together and find a solution to reduce the deficit rather than engaging in a “competition” to see who can give away more. Cuban suggested that taxing stock buybacks could be a way to generate revenue, reduce the deficit, and change corporate behavior. He believes that the country needs a leader who can bring people together and find solutions to the problems facing the nation. Cuban also expressed his concerns about the impact of tariffs on the economy, citing the example of Intel and TSMC, which are already producing high-tech chips. He believes that the government needs to find ways to support American companies and create jobs rather than relying on tariffs.
Cuban noted that there has not been a boom in the manufacturing industry; the government’s policies, such as the I.R.A. (Inflation Reduction Act), have contributed to the manufacturing industry. However, 75% of manufacturing companies have fewer than 20 employees, and the government needs to find ways to support these small businesses. Cuban also mentioned that some people believe that the government should not have a steel policy, while others argue that it is necessary. Cuban believes that the world has changed and the United States needs to invest in AI to maintain its military dominance and competitiveness. He emphasized that whoever wins in AI will have the best military and that the country cannot afford to lose this battle.
Cuban believes that the government should not impose price controls, as it can have unintended consequences, the free market can take care of itself, and that the government should not intervene unless necessary.
Mark Cuban’s insights highlight the need to address critical issues such as the national debt, deficit, and the impact of tariffs on the economy.
Our Methodology
To compile our list of the 7 best under the radar stocks to buy according to analysts, we sifted through internet rankings to find 30 under the radar stocks. From that list, we narrowed our choices to the 7 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of October 2. We also added the number of hedge fund holding stocks in these companies, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their average upside potential as of October 2.
Why do we care about what hedge funds do? 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).
A close-up of a wellhead, showing off the company’s production of oil and natural gas.
Permian Resources (NYSE:PR)
Upside Potential: 31.50%
Number of Hedge Fund Investors: 51
Permian Resources (NYSE:PR) is an oil and gas exploration and production company focused on the Permian Basin in Texas and New Mexico. The company operates in one of the most significant oil-producing regions in the United States.
In Q2, Permian Resources’ (NYSE:PR) revenue increased 100% year-over-year to $1.25 billion. Net income skyrocketed 220% to $235.1 million, while earnings per share (EPS) came in at $0.38, beating analyst estimates of $0.36 per share. The company’s oil production also exceeded expectations, reaching 153,000 barrels per day and 339,000 barrels of oil equivalent per day.
The impressive financial results were driven by efficiencies in drilling and completion (D&C) activities, which led to faster cycle times and improved well performance. Additionally, the company’s gas and natural gas liquids (NLG) segments saw significant growth due to increased gas processing capacity. Furthermore, Permian Resources (NYSE:PR) reported improved cost control measures, which brought well costs down to $830 per foot, below the full-year guidance of $860 per foot.
Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $19.33, which represents a 31.50% upside potential from its current levels. As of the second quarter, the company’s stock is held by 51 hedge funds, with a total stake valued at $1.40 billion.
Overall PR ranks 6th on our list of the under the radar stocks to buy. While we acknowledge the potential of PR as an investment, our conviction lies in the belief that 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 PR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
