Precision Drilling (NYSE:PDS) Stock, Quote.Headers.trade-ideas

Precision Drilling

Precision Drilling Corpd is a provider of contract drilling and completion and production services to oil and natural gas exploration and production companies in Canada, the United States and certain international locations. Contract Drilling Services include drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services include service rigs, oilfield equipment rental, and camp and catering services.

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Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- &#34;buy low and sell high.&#34; Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by &#34;buying high and selling higher.&#34;

Despite Fast-Paced Momentum, Precision Drilling Is Still a Bargain Stock

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Precision Drilling sees a surge in shares as Q4 results reveal C$506.9 million in revenues, driven by increased North American and international activity, with adjusted EBITDA hitting C$151.2 million. CEO Kevin Neveu outlines a bullish outlook, anticipating a 40% Y/Y increase in international rig count, driven by term contracts in Kuwait and Saudi Arabia. The company aims to reduce debt and allocate significant portions of free cash flow to share repurchases.

Precision Drilling Shares Are Rocketing Today: What&#39;s Going On?

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U.S. stocks traded higher, with the Dow Jones gaining around 100 points on Friday. Here are some big stocks recording gains in today’s session.

Smartsheet, Kroger, Lantronix And Other Big Stocks Moving Higher On Friday

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Precision Drilling shares are trading higher. The company reported Q3 financial results.

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $1.69 per share which missed the analyst consensus estimate of $1.85 by 8.65 percent. This is a 56.48 percent increase over earnings of $1.08 per share from the same period last year. The company reported quarterly sales of $349.77 million which missed the analyst consensus estimate of $362.83 million by 3.60 percent. This is a 5.03 percent increase over sales of $333.02 million the same period last year.

Precision Drilling Q3 EPS $1.69 Misses $1.85 Estimate, Sales $349.77M Miss $362.83M Estimate

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- &quot;buy low and sell high.&quot; Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by &quot;buying high and selling higher.&quot;
Who doesn&#39;t like betting on fast-moving trending stocks? But determining the right entry point isn&#39;t easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score helps identify great momentum stocks by paying close attention to trends in a stock&#39;s price or earnings, our &#39;Fast-Paced Momentum at a Bargain&#39; screen comes handy in spotting fast-moving stocks that are still attractively priced.
Precision Drilling (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 4.2%, the stock of this oilfield services company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PDS meets this criterion too, as the stock gained 5.9% over the past 12 weeks.
Moreover, the momentum for PDS is fast paced, as the stock currently has a beta of 2.03. This indicates that the stock moves 103% higher than the market in either direction.
Given this price performance, it is no surprise that PDS has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PDS earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That&#39;s because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up.
Most importantly, despite possessing fast-paced momentum features, PDS is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PDS is currently trading at 0.75 times its sales. In other words, investors need to pay only 75 cents for each dollar of sales.
So, PDS appears to have plenty of room to run, and that too at a fast pace.
<a href="https://www.zacks.com/stock/news/2327475/despite-fast-paced-momentum-precision-drilling-pds-is-still-a-bargain-stock?cid=CS-BENZ-FT-tale_of_the_tape|fast_paced_momentum_at_a_bargain-2327475">To read this article on Zacks.com click here.</a>

RBC Capital analyst Keith Mackey maintains Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and raises the price target from C$122 to C$125.

Price Target

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RBC Capital Maintains Outperform on Precision Drilling, Raises Price Target to C$125

Piper Sandler analyst Luke Lemoine maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Overweight and lowers the price target from $101 to $95.

Piper Sandler Maintains Overweight on Precision Drilling, Lowers Price Target to $95

Piper Sandler analyst Luke Lemoine maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Overweight and raises the price target from $81 to $101.

Piper Sandler Maintains Overweight on Precision Drilling, Raises Price Target to $101

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $1.88 per share which missed the analyst consensus estimate of $2.63 by 28.63 percent. The company reported quarterly sales of $391.580 million which missed the analyst consensus estimate of $530.500 million by 26.19 percent. This is a 5.23 percent decrease over sales of $413.211 million the same period last year.

Earnings Misses

Precision Drilling Q1 2024 GAAP EPS $1.88 Misses $2.63 Estimate, Sales $391.580M Miss $530.500M Estimate

RBC Capital analyst Keith Mackey reiterates Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and maintains C$122 price target.

Reiteration

RBC Capital Reiterates Outperform on Precision Drilling, Maintains C$122 Price Target

Precision Drilling Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) shares are surging today after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/g36950232/precision-drilling-reports-2023-fourth-quarter-and-year-end-unaudited-financial-results" rel="noreferrer noopener">fourth-quarter FY23 results</a>.
Revenues fell 0.7% Y/Y to C$506.9 million in the quarter. Contract Drilling Services revenue declined 1.5% Y/Y to C$446.5 million, while Completion and Production Services revenue increased 5.4% Y/Y to C$62.5 million.
Drilling rig utilization days declined 25% Y/Y in the U.S. and 3% Y/Y in Canada, while international drilling rig utilization days grew 26% Y/Y.
Adjusted EBITDA increased to C$151.2 million from C$91.1 million in the quarter.
EPS stood at C$9.81, a significant&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">increase from C$0.27 a year ago</a>.
Operating cash flow came in at C$170.3 million from C$159.1 million the prior year quarter. Capital expenditures stood at C$79 million compared with C$57 million a year ago.&nbsp;
The company currently has 45 active rigs in the U.S., 64 in Canada and 8 internationally.
Kevin Neveu, President and CEO, said, &#8220;Internationally, we recertified and reactivated four Kuwait rigs in 2023 and now have eight active rigs working in the Kingdom of Saudi Arabia and Kuwait. With these additional rigs, we expect our activity to increase approximately 40% year over year and provide predictable future cash flow as the majority of these rigs are under five-year term contracts that extend into 2027 and 2028.&#8221;&nbsp;
Outlook: The company expects to reduce debt by C$150 million to C$200 million in 2024 and allocate 25% to 35% of free cash flow before debt repayments&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">toward share repurchases</a>.
Moreover, it plans to lower debt by another C$100 million by the end of 2026 and continue to shareholder capital returns of 50% of free cash flow.
Precision Drilling projects its average active international rig count to increase by around 40% Y/Y in the year.
Price Action: PDS shares are up 9.53% at $64.58 on the last check Tuesday.

Precision Drilling Shares Are Rocketing Today: What's Going On?

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $7.20 per share which beat the analyst consensus estimate of $1.79 by 302.29 percent. This is a 3500.5 percent increase over earnings of $0.20 per share from the same period last year. The company reported quarterly sales of $372.42 million which beat the analyst consensus estimate of $360.98 million by 3.17 percent. This is a 2.01 percent decrease over sales of $380.07 million the same period last year.

Precision Drilling Q4 GAAP EPS $7.20 Beats $1.79 Estimate, Sales $372.42M Beat $360.98M Estimate

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Earnings Scheduled For February 6, 2024

Precision Drilling Says Reduced Total Debt By $152 Million In 2023, Says It Added 18 High-quality Drilling Rigs To Fleet And Decommissioned 27 Legacy Rigs In Q4

National Bank Financial Inc analyst Dan Payne downgrades Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) from Outperform to Sector Perform and announces C$135 price target.

Downgrades

National Bank Financial Inc Downgrades Precision Drilling to Sector Perform, Announces C$135 Price Target

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $1.08 per share which missed the analyst consensus estimate of $1.61 by 32.92 percent. This is a 30.77 percent decrease over earnings of $1.56 per share from the same period last year. The company reported quarterly sales of $333.02 million which missed the analyst consensus estimate of $336.59 million by 1.06 percent. This is a 1.18 percent increase over sales of $329.15 million the same period last year.

Precision Drilling Q3 EPS $1.08 Misses $1.61 Estimate, Sales $333.02M Miss $336.59M Estimate

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) is set to give its latest quarterly earnings report on Thursday, 2023-10-26. Here's what investors need to know before the announcement.
Analysts estimate that Precision Drilling will report an earnings per share (EPS) of $1.61. 
Precision Drilling bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.21, which was followed by a 4.3% increase in the share price the next day.
Here's a look at Precision Drilling's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>1</td>
<td>3.07</td>
<td>3.21</td>
<td>0.98</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.21</td>
<td>4.12</td>
<td>0.20</td>
<td>1.56</td>
</tr>
<tr>
<td>Price Change %</td>
<td>4.3%</td>
<td>-3.9%</td>
<td>4.64%</td>
<td>6.69%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1698260477_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Precision Drilling were trading at $60.24 as of October 24. Over the last 52-week period, shares are down 9.74%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/PDS/earnings">To track all earnings releases for Precision Drilling visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Preview For Precision Drilling

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Shares of oil, gas and energy services stocks are trading lower amid a drop in oil prices.

RBC Capital analyst Kurt Hallead maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Outperform and raises the price target from C$118 to C$125.

RBC Capital Maintains Outperform on Precision Drilling, Raises Price Target to $125

RBC Capital analyst Keith Mackey maintains Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and raises the price target from C$118 to C$125.

U.S. stocks traded higher, with the Dow Jones gaining around 100 points on Friday. Here are some big stocks recording gains in today&rsquo;s session.
<ul>
<li>Lantronix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ltrx#NASDAQ">LTRX</a>) shares jumped 26.3% to $5.05 following better-than-expected quarterly sales.</li>
<li>Smartsheet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smar#NASDAQ">SMAR</a>) rose 14.1% to $46.04 after the company reported a second-quarter earnings beat and issued strong guidance.</li>
<li>Smith &amp; Wesson Brands, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/swbi#NASDAQ">SWBI</a>) shares gained 13.5% to $11.94 after the company reported better-than-expected financial results.</li>
<li>Gatos Silver, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gato#NYSE">GATO</a>) jumped 13% to $5.25. Canaccord Genuity upgraded Gatos Silver from Hold to Buy and raised the price target from $5 to $5.5.</li>
<li>Guidewire Software, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gwre#NYSE">GWRE</a>) surged 12.2% to $95.23 following quarterly results.</li>
<li>CymaBay Therapeutics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbay#NASDAQ">CBAY</a>) jumped 11.1% to $16.67. Raymond James maintained CymaBay Therapeutics with a Strong Buy and raised the price target from $17 to $33.</li>
<li>Seneca Foods Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/senea#NASDAQ">SENEA</a>) gained 7.8% to $53.50.</li>
<li>IonQ, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ionq#NYSE">IONQ</a>) jumped 7.1% to $18.68.</li>
<li>Lifezone Metals Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lzm#NYSE">LZM</a>) rose 7.1% to $13.13.</li>
<li>Aclaris Therapeutics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acrs#NASDAQ">ACRS</a>) surged 7% to $8.06.</li>
<li>STAAR Surgical Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/staa#NASDAQ">STAA</a>) gained 7% to $45.13. STAAR Surgical 10% owner Neal Bradsher acquired a total of 189,962 shares an average price of $41.42.</li>
<li>Precision Drilling Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) jumped 5.8% to $72.65.</li>
<li>The Kroger Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>) rose 4% to $47.22 following quarterly results. The company also reached an opioid settlement agreement, agreeing to pay up to $1.2 billion to states and subdivisions and $36 million to tribes.</li>
</ul>
Now Read This: <a href="https://www.benzinga.com/news/23/09/34361412/wall-streets-most-accurate-analysts-say-hold-these-3-defensive-stocks-with-over-3-dividend-yields"> Wall Street&#39;s Most Accurate Analysts Say Hold These 3 Defensive Stocks With Over 3% Dividend Yields</a>

Precision Drilling Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) penned an agreement to acquire CWC Energy Services Corp.&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/09/g34308744/precision-drilling-announces-acquisition-of-cwc-energy-services" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">for approximately C$141 million</a>.
The acquisition price comprises 947,909 PDS shares valued at approximately C$88 million as of September 1, 2023, market close, C$14 million in cash, plus the assumption of CWC&#39;s outstanding debt.
With the deal, PDS expects to add 62 marketed service rigs in Canada, seven in Canada, and 11 in the U.S. to its fleet.
The transaction is expected to completed in Q4 FY23, subject to CWC shareholders and other regulatory approvals.
Synergies: Post-integration, PDS expects to realize annual operating synergies of around C$20 million and has identified about C$20 million of excess CWC real estate that it plans to monetize post-transaction closure.
The company anticipates the transaction to be accretive on a 2024 cash flow per share basis and aid its ongoing deleveraging plan.
&quot;This acquisition supports our&nbsp;High Performance, High Value&nbsp;strategy as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy. I am excited to welcome the CWC employees to the Precision team,&quot; said Kevin Neveu, PDS President and CEO.
PDS reaffirmed its plans of 2023 debt reduction of C$150 million in 2023 and C$500 million from 2022-2025.
In Q2, PDS&#39; cash provided by operations came in at C$28 million vs. cash used in operations of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/04/32009582/precision-drilling-clocks-59-revenue-growth-in-q1-cuts-2023-capital-spending-budget" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">C$(65) million a year ago</a>.&nbsp;
Price Action: PDS shares closed lower by 0.39% at $67.05 on Wednesday.

Precision Drilling Bolsters Service Offering Via Acquisition Of CWC Energy Services For C$141M

Precision Drilling: Capitalizing On Strong Activity In Canada

Due to the growing demand for oil and gas, the development of new technologies, and expanding drilling activities, the energy industry is poised for continued growth. Therefore, it could be wise to buy small-cap energy stocks Precision Drilling (PDS), VAALCO Energy (EGY), and Obsidian Energy (OBE), having significant upside potential. Read on... Consistent withdrawals from global oil inventories owing to OPEC+ production cuts, increasing geopolitical risks, and supply disruptions are likely to push the oil prices higher in 2024, and the rally will continue through 2025. This presents a prosperous opportunity for investors seeking to invest in the energy market.
Against this backdrop, investors could consider investing in solid small-cap energy stocks such as Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>), VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>), and Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>) with major upside potential.
According to the <a href="https://www.iea.org/reports/oil-market-report-november-2024">IEA Oil Market Report</a>, world oil demand is expected to grow by 920 kb/d in 2024 and by one mb/d in 2025, reaching 102.8 mb/d and 103.8 mb/d, respectively. Also, the global oil supply reflected growth by 290 kb/d in October to 102.9 mb/d. The growth was the result of the return of Libyan barrels to the market, which also offset lower Kazakh and Iranian supplies.
In October, the Brent crude oil spot price averaged $76 per barrel (b), $2/b above the average in September, which was an outcome of market concerns over Israeli response to Iran's missile attack on Iran's oil infrastructure, which could have hindered its ability to produce or market oil.
The ongoing withdrawals from global oil inventories <a href="https://www.eia.gov/outlooks/steo/report/global_oil.php">stemming from OPEC+ production cuts</a> and the potential for further geopolitical tensions are likely to push oil prices through the first quarter of 2025. Also, in its short-term energy outlook, EIA projected that the Brent price will surge from $72/b on November 11 to an average of $78/b during the first quarter of 2025.
Besides, the rising demand for natural gas and oil is projected to propel the growth of the offshore drilling market in the future. The offshore drilling market is poised to expand at a <a href="https://www.openpr.com/news/3722785/offshore-drilling-global-market-2024-major-drivers-analysis#:~:text=According%20to%20The%20Business%20Research,(CAGR)%20of%208.2%25.">CAGR of 8.4%</a>, reaching a market value of $46.27 billion in 2028.
Amid this, small-cap energy stocks present significant potential for investors. Investors can scoop up the shares of these stocks at a relatively lower price and benefit exponentially over the long term. Therefore, investing in fundamentally solid small-cap energy stocks like PDS, EGY, and OBE could be wise.
Let's discuss the fundamentals of these stocks in detail:
Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>)
Headquartered in Calgary, Canada, PDS is a drilling company that provides onshore drilling, completion, and production services to exploration and production companies in the oil, natural gas, and geothermal industries in North America and the Middle East. It operates in Contract Drilling Services and Completion and Production Services segments.
In terms of forward non-GAAP P/E, PDS is trading at 9.46x, 23.4% lower than the industry average of 12.34x. Likewise, the stock's forward EV/EBITDA multiple of 3.75 is 39.7% lower than the industry average of 6.22. Also, its forward Price/Cash Flow of 2.65x is 54.1% lower than the industry average of 5.76x.
For the third quarter that ended September 30, 2024, PDS' revenue grew 6.8% from the year-ago value to $477.15 million. The company's earnings before income taxes rose 91.6% year-over-year to $53.06 million. Its net earnings amounted to $39.18 million and $2.31 per share, up 98% and 59.3% from the prior year's quarter, respectively.
Furthermore, the company's <a href="https://www.investopedia.com/terms/e/ebitda.asp">adjusted EBITDA</a> rose 24.3% year-over-year to $142.42 million.
Street expects PDS' revenue and EPS for the fiscal year (ending December 2025) to increase 3.4% and 14.1% year-over-year to $1.44 billion and $7.51, respectively. Furthermore, the company surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
PDS' stock has gained 2.3% over the past month and 5.8% over the past year to close the last trading session at $62.30. Its 12-month price target of $88.45 reflects a <a href="https://www.tipranks.com/stocks/pds/forecast">42% potential upside</a>.
PDS' bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Quality and Value. PDS has topped among the 13 stocks in the <a href="https://stocknews.com/category/energy-drilling/">Energy - Drilling</a> industry.
<a href="https://stocknews.com/stock/PDS/">Click here</a> to access additional PDS ratings for Sentiment, Momentum, Growth, and Stability.
VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>)
EGY is an independent energy company engaged in acquiring, developing, and producing crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds a 58.8% interest in Etame commercial production.
On November 11, EGY declared its quarterly cash dividend of $0.0625 per share of common stock for the fourth quarter of 2024, payable on December 20, 2024, to stockholders of record at the close of business on November 22, 2024. EGY pays an annual dividend of $0.25, which translates to a yield of 4.75% at the current share price. Its four-year average dividend yield is 2.35%.
On May 29, EGY announced the successful drilling campaign results. It drilled, completed, and brought into production four wells in Canada, which were 2.75-mile lateral development wells. The company anticipated strong initial production rates of over 500 barrels of oil per day (BOPD) in three of the four wells, with nearly 350 BOPD production for the fourth well.
For the third quarter that ended on September 30, 2024, EGY's total net revenue increased 20.7% year-over-year to $140.33 million. Its operating income rose 24% from the year-ago value to $44.08 million. The company's net income came in at $10.99 million and $0.10 per share, reflecting growths of 79% and 66.7% year-over-year, respectively.
In addition, the company's adjusted EBITDAX of $92.76 million indicates an increase of 30% from the prior year's quarter.
Street expects EGY's revenue for the first quarter (ending March 2025) to increase 21.2% year-over-year to $121.34 million. The company's EPS for the same quarter is expected to grow 42.9% year-over-year to $0.10. Moreover, it has topped the consensus EPS and revenue estimates in three of the trailing four quarters.
EGY's stock has surged 25.8% over the past year to close the last trading session at $5.26. Wall Street analysts expect the stock to reach $9.13 in the near term, indicating a potential <a href="https://www.tipranks.com/stocks/egy/forecast">upside of 73.6%</a>.
EGY's sound fundamentals are reflected in its POWR Ratings. The stock has an A grade for Quality and a B grade for Value. Within the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry, EGY is ranked #19 out of 76 stocks.
In addition to the POWR Ratings I've just highlighted, you can see EGY's Momentum, Growth, Sentiment, and Stability ratings <a href="https://stocknews.com/stock/EGY/">here</a>.
Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>)
Headquartered in Calgary, Canada, OBE engages in exploring, producing, and developing oil and natural gas properties in Western Canada.
On September 30, OBE revised its 2024 guidance, including the ongoing strong second-half 2024 drilling results, which continue to exceed the company's initial expectations. The company raised its 2024 production guidance to the range of 37,000 to 37,400 boe/d (midpoint of 37,200 boe/d).
OBE's total production rose 20.6% from the year-ago value to 39,714 boe/d during the third quarter that ended September 30, 2024. The company's net income of CAD 33.20 million ($23.56 million) or CAD 0.42 per share indicates increases of 33.9% and 40% from the previous year's quarter, respectively.
Furthermore, the company's funds flow from operations increased 26.1% year-over-year to CAD 124.70 million ($88.49 million).
Analysts expect OBE's revenue for the fiscal year (ending December 2025) to increase 8.8% year-over-year to $621.51 million, and its EPS is expected to grow 17.5% year-over-year to $4.59 for the same year.
The stock has declined 6.5% over the past month to close the last trading session at $5.49. Its 12-month price target of $10.40 reflects an <a href="https://www.tipranks.com/stocks/obe/forecast">89.4% potential upside</a>.
OBE's promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Value and Growth. Within the Energy – Oil &amp; Gas industry, OBE is ranked #9 out of 76 stocks.
<a href="https://stocknews.com/stock/OBE/">Click here</a> to access additional ratings of OBE for Momentum, Sentiment, Quality, and Stability.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
PDS shares were trading at $63.14 per share on Monday afternoon, up $0.84 (+1.35%). Year-to-date, PDS has gained 16.30%, versus a 24.87% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/pds-egy-obe-3-small-cap-energy-stocks-with-major-upside-potential/>3 Small-Cap Energy Stocks With Major Upside Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Small-Cap Energy Stocks With Major Upside Potential

Precision Drilling ( ($TSE:PD) ) has shared an update. Precision Drilling Corporation has announced a second amended and restated credit agreement ...

Precision Drilling Secures $375 Million in Amended Credit Agreement

Cheap stocks are worth considering now due to expected interest rate cuts, potential market rebounds, and substantial upside in growing industries. Hence, stocks like Pfizer (PFE), Micron Technology (MU), and Precision Drilling (PDS), with high analyst price targets for 2024, are smart portfolio additions now. Read on... Cheap stocks could be a smart investment opportunity, as economists predict further rate cuts in 2025, providing a chance to purchase undervalued assets in sectors like medical, semiconductor, and energy at a discount. Stocks in growing industries, especially those priced lower, may offer substantial upside potential as these companies expand.
Therefore, investors might want to consider fundamentally strong, cheap stocks like Pfizer Inc. (<a href="https://stocknews.com/stock/PFE/">PFE</a>), Micron Technology, Inc. (<a href="https://stocknews.com/stock/MU/">MU</a>), and Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>), which have high analyst price targets for 2024.
Companies with lower stock prices often see larger percentage gains than higher-priced stocks during growth periods. Stocks priced low due to temporary market inefficiencies or sentiment shifts can rebound as fundamentals improve. Additionally, low-priced stocks often form patterns that attract technical analysts, driving increased demand and offering potential for significant price appreciation.
Fed is expected to cut interest rates by 25 basis points this December, potentially boosting the stock market. Lower rates can <a href="https://www.reuters.com/markets/us/federal-reserve-cut-rates-by-25-bps-dec-18-pause-january-2024-12-10/">reduce borrowing costs</a>, stimulate investment, and raise stock prices, especially for cheap stocks. Despite inflation concerns, the U.S. economy is projected to grow at 2.1% next year, creating a favorable environment for businesses, including those with lower stock prices.
Considering these trends, let's assess the fundamentals of the abovementioned cheap stocks.
Pfizer Inc. (<a href="https://stocknews.com/stock/PFE/">PFE</a>)
PFE discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the U.S., Europe, and internationally.
On November 20, 2024, PFE announced the European Commission's approval of HYMPAVZI (marstacimab) as the first once-weekly subcutaneous treatment for severe hemophilia A or B without inhibitors. It is also the first hemophilia medicine in the EU administered via a pre-filled pen or syringe, showing significant efficacy in reducing bleeding rates.
On October 22, 2024, PFE announced FDA approval of ABRYSVO, the first RSV vaccine for adults aged 18-59 at high risk of RSV-related lower respiratory tract disease, expanding its indications to younger adults. It remains the only RSV vaccine approved for pregnant individuals to protect infants from birth to six months.
In terms of forward non-GAAP <a href="https://www.investopedia.com/terms/p/price-earningsratio.asp">P/E</a>, PFE's 8.75x is 57.9% lower than the 20.77x industry average. Its 8.20x forward EV/EBITDA is 37.5% lower than the 13.12x industry average. Likewise, its 10.08x forward EV/EBIT is 39.2% lower than the 16.57x industry average.
PFE's total revenues for the fiscal third quarter, which ended September 30, 2024, rose 31.2% year-over-year to $17.70 billion. Likewise, its Biopharma revenues were $17.39 billion, up 31.9% from the prior-year quarter. Moreover, the company's adjusted net income and adjusted EPS attributable to PFE common shareholders totaled $6.05 billion and $1.06 for the quarter, respectively.
Street expects PFE's EPS and revenue for the quarter ending December 31, 2024, to increase 369.1% and 21.2% year-over-year to $0.47 and $17.27 billion, respectively. PFE surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past month, the stock has declined 4.3% to close the last trading session at $25.58. The average analyst price target of $31.75 indicates a <a href="https://www.tipranks.com/stocks/pfe/forecast">24.1% upside potential</a>.
PFE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect robust prospects. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
PFE is ranked #27 out of 153 stocks in the <a href="https://stocknews.com/category/pharmaceuticals/">Medical – Pharmaceuticals</a> industry. It has an A grade for Growth and a B for Value and Sentiment. To see PFE's Momentum, Stability, and Quality ratings, <a href="https://stocknews.com/stock/PFE/">click here</a>.
Micron Technology, Inc. (<a href="https://stocknews.com/stock/MU/">MU</a>)
MU designs, develops, manufactures, and sells memory and storage products internationally. The company operates through four segments: the Compute and Networking Business Unit, the Mobile Business Unit, the Embedded Business Unit, and the Storage Business Unit.
On November 12, 2024, MU announced the Micron 6550 ION E3.S SSD, the world's first PCIe Gen5 60TB SSD. This innovative storage device offers best-in-class performance, energy efficiency, and density, addressing the growing demands of AI and exascale data centers.
On October 15, 2024, MU announced the launch of its Crucial DDR5 CUDIMM and CSODIMM memory solutions, offering speeds up to 6,400 MT/s for enhanced AI PC and workstation performance. These are the first JEDEC-standard DDR5 clock driver modules, validated by Intel for capacities up to 64GB.
In terms of forward non-GAAP PEG, MU's 0.23x is 88.1% lower than the 1.92x industry average. Likewise, its 11.68x forward non-GAAP P/E is 55.7% lower than the 26.38x industry average. Also, its 3.11x forward EV/Sales is 4.3% lower than the 3.25x industry average.
During the fourth quarter ended August 29, 2024, MU's revenue increased 93.3% year-over-year to $7.75 billion. The company's non-GAAP operating income was $1.75 billion, compared to an operating loss of $1.21 billion in the same quarter of the previous year. Additionally, the company's non-GAAP net income and EPS were $1.34 million and $1.18, respectively.
For the quarter ended November 30, 2024, MU's revenue is expected to increase 84.3% year-over-year to $8.71 billion. Its EPS for the quarter ending February 28, 2025, is expected to rise 363.4% year-over-year to $1.95. MU surpassed the Street EPS estimates in three of the trailing four quarters.
Over the past year, MU's stock has gained 28.5% to close the last trading session at $102.50. The average analyst price target of $153.05 indicates a <a href="https://www.tipranks.com/stocks/mu/forecast">49.3% upside potential</a>.
MU's strong fundamentals are reflected in its POWR Ratings. It has an A grade for Growth. Within the <a href="https://stocknews.com/category/semiconductor-wireless-chip/">Semiconductor &amp; Wireless Chip</a> industry, it is ranked #23 out of 90 stocks. To access the additional POWR Ratings of MU for Value, Momentum, Stability, Sentiment, and Quality, <a href="https://stocknews.com/stock/MU/">click here</a>.
Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>)
Headquartered in Calgary, Canada, PDS is a drilling company that provides onshore drilling, completion, and production services to exploration and production companies in the oil, natural gas, and geothermal industries across North America and the Middle East. The company operates through its Contract Drilling Services and Completion and Production Services segments.
In terms of forward Price/Sales, PDS' of 0.62x is 57.2% lower than the 1.45x industry average. Its 8.28x forward EV/EBIT is 22.3% lower than the 10.66x industry average. Likewise, its 9.28x forward non-GAAP P/E is 23.3% lower than the 12.09x industry average.
PDS' revenue for the third quarter, which ended on September 30, 2024, increased 6.8% year-over-year to $477.16 billion. The company's adjusted EBITDA rose 24.3% year-over-year to $142.42 million. For the same period, its net earnings amounted to $39.18 million and $2.31 per share, up 98% and 59.3% over the prior-year quarter, respectively.
Analysts expect PDS' EPS for the quarter ending March 31, 2025, to increase 10.4% year-over-year to $2.04. Its revenue for fiscal 2025 is expected to grow 3.3% year-over-year to $1.41 billion. Over the past year, PDS' stock has gained 15.4% to close the last trading session at $60.35. The average analyst price target of $87.60 indicates a <a href="https://www.tipranks.com/stocks/pds/forecast">45.2% upside potential</a>.
PDS' POWR Ratings reflect this positive outlook. PDS has an overall rating of B, which translates to a Buy in our proprietary rating system.
It is ranked first out of 13 stocks in the <a href="https://stocknews.com/category/energy-drilling/">Energy - Drilling</a> industry. It has an A grade for Value and a B for Quality. In addition to the POWR Ratings grades I've just highlighted, you can see PDS' ratings for Growth, Momentum, Stability, and Sentiment, <a href="https://stocknews.com/stock/PDS/">here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
PFE shares were trading at $25.38 per share on Monday afternoon, down $0.20 (-0.78%). Year-to-date, PFE has declined -5.13%, versus a 29.07% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/pfe-mu-pds-3-cheap-stocks-with-high-analyst-price-targets-for-2024/>3 Cheap Stocks With High Analyst Price Targets for 2024</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Cheap Stocks With High Analyst Price Targets for 2024

Precision Drilling (PDS) provided a series of announcements including 2024 debt repayment and year end liquidity update, capital allocation framewo...

Precision Drilling meets 2024 debt repayment and share repurchase targets

Precision Drilling to boost stock buybacks, eyes further debt reduction

RBC Capital analyst Keith Mackey maintained a Buy rating on Precision Drilling (PDS – Research Report) on January 10 and set a price target of C$12...

Precision Drilling (PDS) Receives a Buy from RBC Capital

Precision Drilling ( ($TSE:PD) ) has shared an update. On January 14, 2025, Precision Drilling announced its plan to release its 2024 fourth quarte...

Precision Drilling to Announce 2024 Year-End Results

Press Releases

Precision Drilling Corporation Announces Voting Results from the 2024 Annual and Special Meeting of Shareholders

Precision Drilling Corporation 2024 Second Quarter Results Conference Call and Webcast

Precision Drilling Extends Senior Credit Facility and Provides Progress Update on 2024 Debt Repayment and Share Repurchase Targets

Precision Drilling Announces 2024 Second Quarter Unaudited Financial Results

Precision Drilling Announces Renewal of Normal Course Issuer Bid

Precision Drilling Corporation 2024 Third Quarter Results Conference Call and Webcast

Precision Drilling Announces 2024 Third Quarter Unaudited Financial Results

Precision Drilling Meets 2024 Debt Repayment and Share Repurchase Targets and Provides Capital Allocation, Financial and Operational Updates

XtremeX Mining Technology Announces Plans for First Deployment of Its Revolutionary Mineral Drilling Rig with Ivanhoe Electric Following an $11M Series-A Financing Led by GoGreen Partners

Precision Drilling Corporation 2024 Fourth Quarter and Year-End Results Conference Call and Webcast

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