Buy Nabors Industries (NBR) Stock for Massive Upside Ahead

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Miller Value Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter, the Deep Value Strategy led the overall marketplace and S&P 1500 Value index, generating returns in excess of 25%. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Miller Value Partners highlighted a few stocks and Nabors Industries Ltd (NYSE:NBR) is one of them. Nabors Industries Ltd (NYSE:NBR) is an oil and gas drilling company. Year-to-date, Nabors Industries Ltd (NYSE:NBR) stock lost 78.1% and on November 3rd it had a closing price of $31.55. Here is what Miller Value Partners said:

“Our largest detractor during the quarter was Nabors Industries (NBR), which was down approximately 30%, weighed heavily by the recent pullback in oil prices. As we highlighted in our last quarterly letter, we see the company making significant advances in improving their balance sheet and lowering their cost structure to weather the current weak industry conditions. We believe Nabors’s normalized earnings and cash flow are significantly higher than current levels and upside potential could be multiples of the current share price.”

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In August, we published an article revealing Miller Value Partners bullish investment thesis on Nabors Industries Ltd (NYSE:NBR) stock in its Q2 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Nabors Industries Ltd (NYSE:NBR).

In Q1 2020, the number of bullish hedge fund positions on Nabors Industries Ltd (NYSE:NBR) stock decreased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Nabors Industries’ growth potential. Our calculations showed that Nabors Industries Ltd (NYSE:NBR) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.