Zacks Industry Outlook Spotlights Transocean, Helmerich & Payne, and Precision Drilling
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Current Industry Challenges: The Zacks Oil and Gas - Drilling industry faces significant uncertainty due to fluctuating oil prices, geopolitical risks, and reduced customer spending, leading to a slowdown in contracting activity and a cautious approach among operators.
Long-Term Demand Outlook: Despite near-term challenges, the structural rise in LNG demand is expected to drive drilling activity from 2026 onward, providing a more stable outlook for select companies like Transocean Ltd., Helmerich & Payne, and Precision Drilling Corp.
Market Performance and Valuation: The drilling industry has underperformed compared to the broader energy sector and the S&P 500, with a significant decline in earnings estimates for 2025 and 2026, highlighting the need for careful evaluation of investment opportunities.
Company Highlights: Transocean reported a 15% increase in contract drilling revenues, Helmerich & Payne leads in U.S. land drilling with a focus on efficiency, and Precision Drilling has shown strong earnings surprises, indicating potential resilience among these firms despite overall industry volatility.
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Analyst Views on PDS
Wall Street analysts forecast PDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PDS is 83.66 USD with a low forecast of 71.99 USD and a high forecast of 96.46 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.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 78.860
Low
71.99
Averages
83.66
High
96.46
Current: 78.860
Low
71.99
Averages
83.66
High
96.46
About PDS
Precision Drilling Corporation is a Canada-based provider of contract drilling and completion and production services primarily to oil and natural gas and geothermal exploration and production companies in Canada, the United States and certain international locations. The Company operates through two segments: Contract Drilling Services and Completion and Production Services. The Contract Drilling Services segment includes drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. The Completion and Production Services segment includes service rigs, oilfield equipment rental and camp and catering services. Its technologies include AlphaAutomation, AlphaApps, AlphaAnalytics and EverGreen. The Company provides services primarily in Canada, the United States and certain international locations.
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.
Precision Drilling Schedules Q4 2025 Earnings Release and Conference Call
- Earnings Release Schedule: Precision Drilling plans to release its Q4 and year-end 2025 results after market close on February 11, 2026, which is expected to provide investors with critical financial data and operational performance insights.
- Conference Call Timing: The company has scheduled a conference call for February 12, 2026, at 11:00 a.m. MT (1:00 p.m. ET), allowing investors to register for a dial-in number and unique PIN to participate in Q&A.
- Webcast Availability: The conference call will be webcast, accessible via the company’s website, with a replay available until the next quarterly call is posted, ensuring transparency and accessibility of information for stakeholders.
- Company Background Information: Precision is a leading provider of energy industry services, featuring advanced digital technology Alpha™ and environmental solutions EverGreen™, committed to delivering efficient and predictable drilling services, thereby enhancing its competitive position in the industry.
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