Ring Energy, Inc. (REI): Among the Cheap Growth Stocks to Buy Now

Yahoo

08-03-2025

We recently compiled a list of the . In this article, we are going to take a look at where Ring Energy, Inc. (NYSEAMERICAN:REI) stands against the other cheap growth stocks.
Growth stocks—those of companies expected to grow at an above-average rate compared to other firms—have historically exhibited cyclical performance patterns. For instance, during the 1990s dot-com era, growth stocks did well, as reported by Hartford Funds.
From 2014 to 2024, growth stocks surged ahead of other market segments, with the Russell Growth Index delivering an annualized return of 17%. This return was more than double that of value stocks (8%), small-cap stocks (8%), and international equities (5%). The broader market, which itself has been heavily influenced by large-cap tech companies, delivered a 13% annualized return. This further amplifies the performance of growth-oriented investments.
This growth-driven rally had profound effects on the composition of traditionally balanced portfolios. A standard 60/40 portfolio (60% equities, 40% bonds) that was left untouched over this period would have seen its growth stock allocation more than double from 20% to 42%, crowding out other investment segments.
As financial markets navigate a stabilizing interest rate environment and moderating inflation, investors are revisiting growth equities with renewed focus. Cheap growth stocks have reemerged as a strategic play in 2025. With the Federal Reserve pausing its tightening cycle and inflation cooling to 2.9% (down from 2022's 9.1% peak), the macroeconomic landscape now favors selective risk-taking.
Analysts suggest that stocks with a price-to-earnings (P/E) ratio below 15x often present attractive investment opportunities. These stocks may offer a combination of growth potential, driven by strong revenue and earnings expansion, as well as resilience, enabling them to perform well even in uncertain macroeconomic conditions.
As Charlie Munger aptly said, "All intelligent investing is value investing—acquiring more than you are paying for. You must value the business in order to value the stock." This mindset aligns perfectly with identifying companies with lower P/E ratios, where the value they offer can outweigh the price being paid. Given this, we will take a look at some of the best cheap growth stocks to invest in.
To compile a list of the 10 Cheap Growth Stocks to Buy Now, we first utilized Finviz stock screener to identify US companies with a Price-to-Earnings (P/E) ratio of 15 or lower and an implied sales growth of over 20% over the last five years. From this selection, we then ranked the stocks according to their P/E ratio.
At Insider Monkey, we are obsessed with hedge funds. 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 ().
An oil rig under construction in the middle of a lake, its lights reflecting on the surrounding water.
Price to Earnings ratio: 2.12
Ring Energy, Inc. (NYSEAMERICAN:REI) is an oil and gas exploration and production company focused on developing its Permian Basin assets in Texas.
On Feb 26, 2025 Ring Energy, Inc. (NYSEAMERICAN:REI) announced a $100 million acquisition of Lime Rock Resources IV, LP's Central Basin Platform (CBP) assets. This further strengthens its Permian Basin footprint. The acquisition, consisting of $80 million in upfront cash, a $10 million deferred payment, and up to 7.4 million shares of common stock, is expected to boost production, improve operational synergies, and enhance free cash flow generation. The newly acquired 17,700 net acres contribute 2,300 barrels of oil equivalent per day (over 80% oil) of low-decline production across 101 gross wells.
Ring Energy, Inc. (NYSEAMERICAN:REI) reported record sales of 20,108 barrels of oil equivalent per day (66% oil) for Q3 2024, exceeding guidance, with oil sales of 13,204 barrels of oil per day. The company posted a net income of $33.9 million and Adjusted Net Income of $13.4 million, reflecting strong operational efficiency. It successfully reduced its debt by $15 million, ending Q3 with $392 million in outstanding borrowings, while boosting its liquidity to $208 million.
Overall REI ranks 1st on our list of the cheap growth stocks to buy now. While we acknowledge the potential of REI as an investment, our conviction lies in the belief that some 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 REI but that trades at less than 5 times its earnings, check out our report about the .
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Disclosure: None. This article is originally published at Insider Monkey.