14 Best Growth Stocks Under $10 to Buy Right Now

5. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Stock price as of May 2^nd: $6.03

Revenue CAGR last 5 years: 29.52%

Number of Hedge Fund Holders: 47

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a provider of drilling and completion services for oil & gas exploration and production in the US and some international markets. PTEN offers several core services, such as contract drilling, integrated well completion, and directional drilling, which are crucial for the exploration process. Additionally, the company provides specialized drill bit solutions that help with exploration in difficult areas, within the US, the Middle East, and other regions. The Houston-based company ranked eighth on our recent list of 12 Best Oil and Gas Dividend Stocks According to Billionaires.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) delivered strong first quarter results with steady drilling activity across US shale and a robust recovery in completions activity following fourth quarter slowdowns. The company’s integrated service offering provides a unique competitive advantage that is difficult to replicate in US shale. The company maintains strong relationships with the industry’s largest operators, with approximately 60% of revenue coming from the 15 most active E&Ps in the US. The strong competitive position is the primary factor that persuaded us to include PTEN on our list of the best growth stocks to buy.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) closed Q1 with $225 million in cash and an undrawn $500 million revolver, demonstrating a strong liquidity position. While recent oil price volatility has created some uncertainty, natural gas markets are showing constructive signs with increased activity in gas-focused basins. The company maintains flexibility in its capital allocation, with a commitment to return at least 50% of adjusted free cash flow to shareholders through dividends and share repurchases, while maintaining a strong balance sheet with net debt at just 1x trailing 12 months adjusted EBITDA.