Oil Service Stocks: A Deep Sea Play Whose Time May Have Come [View article]
OK, I realize I'm a little late to the party here, but I'm hoping maybe someone is still following the drillers and I'm a little confused. The avg. 2009 EPS estimate for ATW is $3.67 (low est. $3.09)...and for 2010 it's $4.43 (low est. $3.80). This is (with either estimate, avg.or lowest) a projection of 20% growth rate...yet the stock is trading at $22. This is 6.1x 2009EPS estimates (7.3x lowest EPS est.)...and only 5-6x 2010 EPS estimates. Seems awfully cheap to me. Am I missing something here? Do these drillers always trade at a low multiple, or what?
Oil Service Stocks: A Deep Sea Play Whose Time May Have Come [View article]