Three Oil and Gas Drillers Showing Strength Amidst Challenges
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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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.

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.








