PDS Should I Buy
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Precision Drilling Corporation (PDS) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators are neutral, options data suggests bearish sentiment, and the company's financial performance has been weak. While there are some positive catalysts like improved U.S. drilling activity and raised price targets by analysts, the stock's recent performance and lack of strong proprietary trading signals make it a hold for now.
The MACD is positive but contracting, RSI is neutral at 45.729, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading below the pivot level of 84.556, with key support at 78.959 and resistance at 90.152. The stock has a 40% chance of declining in the short term based on candlestick pattern analysis.
Analysts have raised price targets, with BMO Capital projecting a C$150 target and maintaining an Outperform rating. U.S. drilling activity has driven revenue growth in Q4 2025, and adjusted EBITDA increased by 4.9% YoY.
The company reported a Q4 2025 GAAP EPS of -C$3.23, and financials from Q3 2025 showed significant declines in revenue (-3.12% YoY), net income (-117.25% YoY), and gross margin (-21.48% YoY). Options sentiment is bearish, and the stock has a high probability of short-term declines.
In Q4 2025, revenue increased by 2.2% YoY to C$478.51 million, driven by U.S. drilling activity. Adjusted EBITDA grew by 4.9% YoY to C$126 million. However, Q3 2025 financials showed significant declines in revenue (-3.12% YoY), net income (-117.25% YoY), and EPS (-122.08% YoY), reflecting challenges in profitability.
Analysts are cautiously optimistic, with TD Securities raising the price target to C$123 and maintaining a Hold rating, while BMO Capital raised the target to C$150 with an Outperform rating. Piper Sandler also raised its target to $81, citing cyclical tailwinds and improving market conditions.
