- Goldman Sachs is out positive on oil service stocks (OIH) as earnings season begins, with negative investor sentiment creating a favorable setup for the sector.
- Among Goldman's reasons: WTI saturation is unlikely in 2014; negative revenue surprises during the year may be offset somewhat by positive margin surprises; and capex should rise by mid-single digits but companies with exposure to horizontal completions on U.S. land and with high Gulf of Mexico and Middle East exposure should see revenue growth at the upper end.
- The firm recommends owning Halliburton (HAL) and Schlumberger (SLB) into earnings, and likes NBR, RES, CJES, BAS, PES and OII.
Goldman sees positive setup for Halliburton, Schlumberger, oil services
Jan 16 2014, 19:05 ET