9 OIL SERVICE STOCKS CONTINUING UPWARD
Purchasing stocks that are currently on the up and up can be a tricky game. No one wants to lose money on their investments. Therefore, the key would be having the ability to identify those stocks that have yet to peak. There are a number of stocks that are on the upward move, and are predicted to continue on that same route. We found some great analysis of the 9 oil stocks that are going to continue to move on up.
RPC Inc. (RES) provides oilfield services in the United States. It operates in two segments – technical services and support services. 2010 was a rebound year. Revenues almost doubled from the year prior. 2010 also had positive earnings. RPC could have a better year than analysts expect. This is based on areas like the Bakken, where companies are waiting significant periods of time for some services. Pressure pumping is not only in demand; companies are beginning to sign contracts instead of waiting. It won’t be long before dayrates increase significantly. 48% of 2010 revenues was generated by pressure pumping. Pressure pumping is a stimulation service that involves fracturing to stimulate production in new wells. RPC is currently spending most of its capital expenditures on this part of the business. This company believes that the large inventory of shale resource will create an increased demand.
RPC’s business is:
- Pressure Pumping – 48%
- Rental Tools – 8%
- Down hole Tools – 12%
- Coiled Tubing – 11%
- Snubbing-Hydraulic Work – over 5%
- Nitrogen – 5%
- Pipe Inspection, Storage and Management – 2%
- Well Control – 1%
RPC believes that contracts are becoming common place for its services. This is also due to increased demand, but more importantly to the very large inventories of work.
- P/E Ratio - 23.99
- Forward P/E - 13.48
- 2011 EPS Growth - 79%
- PEG Ratio (1 year) - .303
- EPS Growth Per Annum (5 years) - 19%
- PEG Ratio (5 year) - .68
Complete Production Services (CPX) offers completion and production services to oil and gas companies. This stock is up $1.94 since I wroteComplete Production Services: A Full Resource Play Provider. Completion is a one stop shop for getting oil out of the ground. Its revenues at the end of 2010 are:
- Pressure Pumping – 30%
- Fluid Handling – 19%
- Well Servicing – 12%
- Coiled Tubing – 10%
- Wireline – 7%
- Other – 22%
As with RPC, pressure pumping continues to be the most important variable for this group. 90% of Complete’s horsepower is 5 or less years old. Since the second quarter of 2010, the pressure pumping fleet is working 18 hours a day, 7 days a week. Complete has significant market share in coiled tubing and well servicing. Complete’s valuations are:
- P/E Ratio - 28.71
- Forward P/E Ratio - 10.96
- 2011 EPS Growth - 132.4%
- PEG Ratio (1 Year) - .217
- EPS Growth Per Annum (5 Years) - 20%
- PEG Ratio (5 Year) - .60
Read the entire article here: http://turnkeyoil.com/2011/04/01/9-oil-stocks-continuing-upward/
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