Seeking Alpha
Value, growth, long-term horizon
Profile| Send Message| ()  

Due to a bleak global economic outlook, oil has really taken a hit in recent months. When there is a lower demand for oil, then there is lower demand for the equipment and services necessary to extract it; so these companies are extremely sensitive to the price of oil. But as such an essential commodity, people will continue to depend on oil for as long as it exists; and these equipment and services companies will remain vital to the industry.

If you're looking to add some of these companies to your portfolio, there's no sense in paying more when you could be paying less. If Warren Buffett has taught investors anything, it's this: Buy cheap. And by cheap I mean basement bottom prices, stocks at (or near) 52 week lows. One of the best times to buy a stock is when the market throws it away, trying to forget about it for one reason or another. If those reasons don't include any issues surrounding the underlying business or its fundamentals, then you may have found a nice value stock. So here are six oil & gas equipment and services stocks near 52 week lows to consider scooping up before their underlying values are realized.

Key Energy Services Inc. (KEY)

  • Market Cap: $1.01 billion
  • Current Share Price: $6.67
  • 52 Week Range: $6.52-$20.77
  • 52 Week % Change: (65.83%)
  • P/E: 8.05
  • PEG: 0.55
  • Price/Book Value: 0.85
  • Operating Margin: 14.36%
  • Profit Margin: 6.24%
  • ROE: 13.74%
  • Total Cash: $31.93 million
  • Total Debt: $865.07 million
  • Current Ratio: 2.10
  • Dividend (%): N/A

Basic Energy Services, Inc. (BAS)

  • Market Cap: $371.19 million
  • Current Share Price: $9.05
  • 52 Week Range: $8.52-$37.79
  • 52 Week % Change: (75.92%)
  • P/E: 4.46
  • PEG: 0.54
  • Price/Book Value: 1.01
  • Operating Margin: 14.85%
  • Profit Margin: 6.23%
  • ROE: 25.67%
  • Total Cash: $67.23 million
  • Total Debt: $781.74 million
  • Current Ratio: 2.86
  • Dividend (%): N/A

Halliburton Company (HAL)

  • Market Cap: $26.22 billion
  • Current Share Price: $28.41
  • 52 Week Range: $26.28-$57.77
  • 52 Week % Change: (46.48%)
  • P/E: 8.88
  • PEG: 0.47
  • Price/Book Value: 1.90
  • Operating Margin: 18.72%
  • Profit Margin: 11.19%
  • ROE: 25.29%
  • Total Cash: $2.76 billion
  • Total Debt: $4.82 billion
  • Current Ratio: 2.79
  • Dividend (%): $0.36 (1.30%)

Baker Hughes Incorporated (BHI)

  • Market Cap: $17.03 billion
  • Current Share Price: $38.85
  • 52 Week Range: $37.08-$81.00
  • 52 Week % Change: (48.54%)
  • P/E: 9.81
  • PEG: 0.62
  • Price/Book Value: 1.07
  • Operating Margin: 14.05%
  • Profit Margin: 8.41%
  • ROE: 11.15%
  • Total Cash: $780.0 million
  • Total Debt: $4.52 billion
  • Current Ratio: 2.63
  • Dividend (%): $0.60 (1.50%)

Weatherford International Ltd. (WFT)

  • Market Cap: $9.03 billion
  • Current Share Price: $11.89
  • 52 Week Range: $10.85-$22.76
  • 52 Week % Change: (35.83%)
  • P/E: 26.42
  • PEG: 0.21
  • Price/Book Value: 0.94
  • Operating Margin: 10.94%
  • Profit Margin: 2.53%
  • ROE: 3.76%
  • Total Cash: $339.0 million
  • Total Debt: $7.89 billion
  • Current Ratio: 1.67
  • Dividend (%): N/A

Superior Energy Services, Inc. (SPN)

  • Market Cap: $3.07 billion
  • Current Share Price: $19.48
  • 52 Week Range: $17.54-$42.87
  • 52 Week % Change: (50.85%)
  • P/E: 9.97
  • PEG: 0.14
  • Price/Book Value: 0.79
  • Operating Margin: 17.29%
  • Profit Margin: 6.82%
  • ROE: 7.78%
  • Total Cash: $135.76 million
  • Total Debt: $2.03 billion
  • Current Ratio: 2.20
  • Dividend (%): N/A

These stocks have had a bumpy ride over the past 52 weeks; and as they hover near their lows of the year it's tempting to hit the buy button. With such attractive valuation metrics it may seem like these stocks can't go much lower; but oil is what really determines the price movement of these companies.

If you believe that oil still has much more room to the downside, then you may want to consider staying away from anything related to oil; but if you're bullish on oil in the long run, it couldn't hurt to start a position now, although there may still be plenty of short term volatility ahead.

As Warren Buffett would say, "Be greedy when others are fearful." And it definitely seems like the time to get into that Ebenezer Scrooge mood.

Source: 6 Oil And Gas Services Stocks For Bargain Hunters