We recently compiled a list of the 12 Stocks That Are About to Explode. In this article, we are going to take a look at where Helmerich & Payne, Inc. (NYSE:HP) stands against the other stocks that are about to explode.
Despite the current headwinds and uncertainty (which also caused heightened volatility in the last 2 weeks), there are indications that the recent US stock market correction was short-lived, and the market could return to growth. Helping the stock market move higher was a rebound in February’s retail sales, following a downward revision in January. The pattern of evolution hints that January’s sluggishness was more weather-driven and had little to do with the general strength of the consumer. Yardeni Research recently expressed a strong belief that retail sales will move higher in March and April, supporting the economy. Also, the recent cuts in real GDP growth projections for the first quarter of 2025 by the Atlanta Fed are primarily driven by a minority of economic niches dependent on public spending, while the core economic sectors remain strong. With that being said, we are currently at a potential bottom of the market correction, which could represent a favorable moment to pick stocks that are about to explode.
Insider trading, specifically purchases made by key executive officers and directors, can often signal future stock price appreciation. When insiders buy shares of their own company, it suggests that those with the most intimate knowledge of the firm’s prospects view the stock as undervalued. Economic research supports this idea; for instance, Lakonishok and Lee (2001) found that insider buying tends to precede periods of higher-than-average returns, indicating that insider purchases provide meaningful predictive power regarding stock performance. Therefore, tracking insider transactions, particularly when top management is actively buying shares in companies that are at or near 52-week lows, may help investors anticipate stocks that are about to explode.
READ ALSO: 10 Stocks Set to Explode in 2025
Insider trading signals become particularly relevant as the new Trump 2.0 regime has caused a plethora of industries to crash and trade near their lows – the tariff news cycle has become exhausting, causing uncertain capital spending plans on top of direct cuts to many government programs and spending. The policies of the new US administration could indeed have long-lasting effects on many industries, such as government contracting (the closure of USAID represents a giant erosion of the total addressable market). Here’s what Treasury Secretary Scott Bessent recently said:
“The market and the economy have become hooked, become addicted, to excessive government spending, and there’s going to be a detox period… Could we be seeing this economy that we inherited starting to roll a bit? Sure. Look, there’s going to be a natural adjustment as we move away from public spending.”
Despite major changes being made in some directions, we do not exclude the possibility that many companies, that reached new lows since the election day of November 2024, are mainly driven by investors’ fears and uncertainty, which may or may not materialize. For instance, many healthcare stocks have been trading lower on fears that Republicans will start digging into Medicare/Medicaid reimbursement policies and potentially interfere with the revenue base of companies relying on those programs. In this context, watching for potential hidden signals from insiders (such as significant insider buying) may help clear out any uncertainty, fear, and doubts by providing a tangible indication of management’s confidence in the company’s future prospects.
A financial advisor presenting a portfolio of investment grade securities to a client.
Our Methodology
For this article, we used Insider Monkey’s insider trading screener to find stocks with at least two insiders buying shares worth at least $100,000 in 2025. Then, we considered only the stocks that are at or near their 52-week low. Our belief is that at least two insiders buying a significant amount of stock while the share price is at or near the lows represents an increased probability that the bottom is in rear-view mirror. Finally, we compare the list with our proprietary Q4 2024 database of hedge funds’ ownership and include in the article the top 12 stocks with the largest number of hedge funds that own the stock. Analysts’ projections for each stock’s upside potential were also included to assess their likelihood of significant growth.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Helmerich & Payne, Inc. (NYSE:HP)
Number of Hedge Fund Holders: 30
Analysts’ Upside Potential as of March 27: 29.2%
Helmerich & Payne, Inc. (NYSE:HP) is a provider of drilling solutions and rig services primarily to the oil and gas industry, specializing in contract drilling of wells for exploration and production companies. The company operates through multiple segments, notably US Land Operations, Offshore Operations, and International Land Operations, with its core business centered around advanced drilling rigs known as FlexRigs. These technologically sophisticated rigs are designed for efficiency, safety, and precision in unconventional and conventional drilling environments. HP is one of the stocks on our list that are about to explode.
Helmerich & Payne, Inc. (NYSE:HP) continued to execute at a high level during Q1 2025, with their North America Solutions segment maintaining industry-leading operational and financial results. The company made significant progress on its international growth strategy through two key initiatives: completing the exportation of 8 FlexRigs into Saudi Arabia for unconventional natural gas drilling and closing the KCA Deutag acquisition, which positions H&P as a global leader in providing onshore drilling solutions.
In North America, HP maintains a dominant market position with over 35% market share in the super-spec FlexRig fleet and a particularly strong presence in the Permian Basin with around 100 rigs operating. The company’s customer-centric approach and performance contracts have enabled it to maintain healthy margins and increase market share despite industry rig count declines in 2024. The KCA Deutag acquisition brings a solid backlog of approximately $5.5 billion supported by blue-chip customers, though there are some near-term headwinds, including rig suspensions in Saudi Arabia.
Looking ahead to 2025, while North America Solutions’ margins are expected to remain healthy with some modest decline, Helmerich & Payne, Inc. (NYSE:HP) anticipates growth opportunities in multiple markets globally and maintains a strong focus on debt reduction while preserving their investment-grade credit rating. The company remains committed to prudent capital allocation, maintaining a strong financial position, and balancing significant free cash flow between growth CapEx opportunities and shareholder returns.
Overall HP ranks 8th on our list of the 12 stocks that are about to explode. While we acknowledge the potential of HP 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 time frame. If you are looking for an AI stock that is more promising than HP 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.