![]() ![]() Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential. In addition to the favorable rank, PTEN enjoys a Zacks Value Style Score of B, Growth of A, and Momentum of A to help it round out with a VGM Score of A. Patterson-UTI is a Zacks Rank #2 (Buy) stock in the Oil and Gas - Drilling industry, which carries a Zacks Industry Rank #15 - placing it in the top 6% of more than 250 Zacks industries. Let’s discuss the reasons that make Patterson-UTI Energy an attractive pick: Solid Rank and VGM Score It operates primarily in four segments: Contract Drilling (contributed 49% of the company’s 2021 revenues), Pressure Pumping (39%), Directional Drilling (8%), and Others (4%). Formed in 1978, Houston, TX-based PTEN is one of the largest onshore contract drillers in the United States and has a large fleet of pressure pumping equipment. One such company is Patterson-UTI Energy PTEN. These also have strong earnings trends to back up their moves. ![]() Naturally, some stocks have been impressive since the start of the year. Yet, the risk of dwindling inventory and the influential oil exporters’ group OPEC agreeing on a production curtailment means that the commodity has got enough reasons to stay elevated in the near-to-medium term. Oil has pulled back from those lofty levels, with the conflict showing no sign of a quick resolution. In March, crude prices surged to multi-year highs of $130 on concerns about supplies from Russia, which is one of the world's largest producers of the commodity. Apart from a constructive fundamental picture, the sector is enjoying support from geopolitical uncertainty amid Russia’s military operations in Ukraine. The space has generated a total return of almost 31% in 2022 compared with the S&P 500’s loss of around 24%. Even as fears revolving around high inflation and slowing growth somewhat cloud the outlook for Oil/Energy, it has continued to be the best S&P 500 sector this year. ![]()
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