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  5. PD: hello it was Eric N top pick around 12-18 months ago it was gone down from in the 90s to the 60s with the drilling enthusiasm By the US , how come it has come down so much what will be the factors ... [Precision Drilling Corporation]
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Q: hello
it was Eric N top pick around 12-18 months ago
it was gone down from in the 90s to the 60s
with the drilling enthusiasm By the US , how come it has come down so much
what will be the factors making this stock turn around?
or should one stay with the pipelines for a safer investment?
thanks
Michael
Asked by Michael on March 25, 2025
5i Research Answer:

Its recent earnings miss in February did not help the stock price, and analyst estimates have been trending lower. It trades at a decent valuation of 8X forward earnings and 0.5X book. Margins have been improving, but sales growth has fluctuated. Following its earnings release, several analysts cut their price targets due to near-term headwinds with a 'flat US rig market.' We see the oilfield services names turning around if tech innovations continue to be implemented and tariff uncertainty is resolved. Largely, we like the diversification of both pipelines and oilfield services names.