10 Best Oil Drilling Stocks to Buy According to Hedge Funds

4. Seadrill Limited (NYSE: SDRL)

Number of Hedge Fund Holders: 33

Seadrill Limited (NYSE:SDRL) is one of the best oil drilling stocks according to hedge funds. On July 15, BTIG upgraded the stock, raising its price target from $28 to $33 while maintaining a Buy rating. That’s a solid ~18% upside from current levels, based on offshore utilization trends and rig quality.

The timing of this call aligns with Seadrill’s Q1 earnings, which showed $430 million in cash, 84% fleet utilization, and a robust $2.8 billion contract backlog extending through 2028. These are the hallmarks hedge funds love in offshore drillers: strong contract visibility, steady cash flow, and asset quality insulated from temporary demand softness.

Seadrill Limited (NYSE:SDRL) owns a modern fleet of deepwater and jackup rigs, delivering precision offshore drilling worldwide. With a fortified balance sheet, expanding backlog, and analysts now raising expectations, SDRL checks every box for hedge funds hunting leverage in the next offshore upswing.