HP Should I Buy
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Helmerich and Payne Inc (HP) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the stock has potential for recovery in the long term, current financial performance, technical indicators, and trading sentiment do not support immediate entry.
The MACD is negatively expanding (-0.219), indicating bearish momentum. RSI is neutral at 42.58, and moving averages are converging, showing no clear trend. The stock is trading near its pivot level (34.716), with key support at 33.486 and resistance at 35.946.
Analysts have raised price targets recently, with some maintaining positive or overweight ratings. The company expects rigs to step back up into the 140 range in the second half of 2026, suggesting potential recovery.
Hedge funds are significantly selling the stock. Financial performance in Q1 2026 shows a sharp decline in net income (-279.89% YoY) and EPS (-281.48% YoY). Gross margin has also dropped significantly. Technical indicators suggest bearish momentum, and options data shows a high put-call ratio, indicating bearish sentiment.
In Q1 2026, revenue increased by 50.16% YoY to $1.02 billion, but net income dropped to -$97.16 million (-279.89% YoY), and EPS fell to -0.98 (-281.48% YoY). Gross margin declined to 11.91% (-51.39% YoY), reflecting profitability challenges.
Recent analyst ratings show mixed sentiment. While some firms raised price targets (e.g., Barclays to $39, Piper Sandler to $40), others remain cautious due to weaker near-term rig counts and international reactivation expenses. The consensus leans toward a neutral to slightly positive outlook.
