Three Oil and Gas Drillers Showing Strength Amidst Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Source: NASDAQ.COM
Industry Overview: The Zacks Oil and Gas - Drilling industry includes companies that provide drilling rigs and services for oil and gas exploration, with a focus on the volatility of offshore drilling compared to onshore operations. The industry's future is influenced more by contracting activity than by oil prices.
Trends Impacting the Industry: Key trends include cautious near-term contracting due to economic uncertainties, strengthening demand for deepwater drilling projects, and rising operational complexities that increase costs and risks for drilling companies.
Zacks Industry Rank and Performance: The industry ranks #226 out of 243 in the Zacks Industry Rank, indicating a bearish outlook with a significant decline in earnings estimates for 2025 and 2026. It has underperformed compared to the broader energy sector and the S&P 500 over the past year.
Stocks to Watch: Notable companies in the industry include Transocean, Helmerich & Payne, and Patterson-UTI Energy, each with unique strengths and challenges, but all facing a tough market environment reflected in their recent stock performances.
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Analyst Views on PTEN
Wall Street analysts forecast PTEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTEN is 7.22 USD with a low forecast of 6.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
4 Hold
1 Sell
Moderate Buy
Current: 7.440
Low
6.00
Averages
7.22
High
9.00
Current: 7.440
Low
6.00
Averages
7.22
High
9.00
About PTEN
Patterson-UTI Energy, Inc. is a provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including contract drilling services, integrated well completion services and directional drilling services. Its Drilling Services segment provides a comprehensive suite of directional drilling services in major producing onshore oil and natural gas basins in the United States, and it provides services that improve the statistical accuracy of wellbore placement for directional and horizontal wells. Its Completion Services segment consists of a well completion business consists of services for hydraulic fracturing, wireline and pumping, completion support, and cementing. Its Drilling Products segment engages in the manufacturing and distribution of drill bits throughout North America. The Company's drilling equipment is used in oil and natural gas exploration and production and in mining operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Patterson-UTI Energy Repurchases 6M Shares, Fair Value Adjusted to $7.20
- Ongoing Buyback: Patterson-UTI Energy repurchased 6 million shares for $33.86 million in Q3 2025, representing 1.56% of its outstanding shares, demonstrating the company's commitment to capital returns and enhancing investor confidence.
- Slight Fair Value Adjustment: The fair value per share has been adjusted down to $7.20, reflecting minor tweaks in long-term revenue growth assumptions while maintaining a net profit margin of approximately 6.96%, indicating a cautious market outlook on future performance.
- Divergent Analyst Ratings: Stifel raised its price target to $9, reflecting optimism around Q3 results, while Barclays lowered its target to $6, citing a softening completions market, showcasing differing market perspectives on the company's outlook.
- Medium-Term Growth Risks: Morgan Stanley trimmed its price target to $6, maintaining an Equal Weight rating, indicating concerns over potential risks to 2026 performance, which may temper investor enthusiasm regarding medium-term growth prospects.
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NetApp Reports Q2 Earnings Beat, Raises FY26 Adjusted EPS Guidance
- Earnings Highlight: On November 25, NetApp reported Q2 earnings of $2.05 per share, exceeding the consensus estimate of $1.89, indicating enhanced profitability that is likely to boost investor confidence.
- Revenue Growth: The quarterly revenue reached $1.71 billion, surpassing Wall Street's expectation of $1.69 billion, demonstrating the company's sustained competitive strength in the market, which may attract more investor interest.
- Outlook Guidance: The company raised its FY26 adjusted EPS guidance, reflecting management's optimistic outlook for future performance, which could further drive stock price appreciation and enhance market confidence.
- Market Reaction: Although NetApp's shares fell 0.9% to $110.90, the strong earnings report and outlook guidance may lay the groundwork for a future stock rebound, drawing attention from long-term investors.
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