Hedge Funds Were Right About These 5 Soaring Stocks

4. Nabors Industries Ltd. (NYSE:NBR)

Number of Hedge Fund Shareholders: 26

Year-to-Date Returns: 55.9%

Hedge fund ownership of Nabors Industries Ltd. (NYSE:NBR) had fallen to all-time lows in recent quarters, but rebounded in the first quarter, more than doubling. Cliff Asness’ AQR Capital Management and Jeffrey Gendell’s Tontine Asset Management were among the funds to buy NBR stakes during Q1.

One of the world’s largest operators of land rigs, Nabors Industries Ltd. (NYSE:NBR) is in a strong position to capitalize on favorable market conditions that should results in great rig activations, higher dayrate averages, and improved margins.

The Miller Value Partners Deep Value Strategy believes Nabors Industries Ltd. (NYSE:NBR) shares will continue to benefit from the company paying down its debt, having this to say about stock in its Q1 2022 investor letter:

“During the quarter, more than half of the portfolio weighting were in holdings that were up in excess of 25%. Our two largest positive contributors includes Nabors Industries (NYSE:NBR), up more than 80%.  Nabors Industries continues to benefit from the rise in oil and gas prices as the industry emerges from a multi-year trough. The company appears well positioned to be a significant beneficiary over the coming years from higher oil prices and greater global demand for their higher spec land rigs. In addition, the company’s proprietary technology offerings have the potential to create significant long-term value. Even after the recent positive move, Nabors remains at a sizable valuation discount to their peers. Nabors pre-split share price at quarter end was only $3/share; historically when oil prices reached current levels, Nabors share price has been in excess of $10/share. Nabors should continue to benefit from paying down debt and free cash flow returning to normalized levels over the next couple of years.”