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Wall Street Targets for the Top Free Cash Generating Oilfield Stocks

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Analysts’ recommendations

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HAL has the most “buy” recommendations

Approximately 89% of Wall Street analysts tracking Halliburton (HAL) have recommended a “buy” or equivalent on December 19, 2017. Approximately 8% recommend a “hold,” and 3% recommended a “sell” or an equivalent. Analysts’ consensus target price for HAL was ~$52.8 on December 19. HAL is currently trading near $45.8, which implies 15% returns over the next 12 months at the current price. HAL makes up 0.18% of the SPDR S&P 500 ETF (SPY). SPY has increased 20% since December 30, 2016, compared to a 15% fall in HAL’s stock price during the period.

Recommendations for SLB, NOV, RES, and FMSA

Approximately 73% of the Wall Street analysts tracking Schlumberger (SLB) recommended a “hold” on December 19. Approximately 27% of sell-side analysts tracking Schlumberger recommended a “hold,” and none recommended a “sell.” Analysts’ consensus target price for SLB was ~$74.6 on December 19. SLB is currently trading at $64.4, which implies ~16% returns over the next 12 months at the current price.

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Approximately 35% of the analysts tracking RPC (RES) have recommended a “buy” or equivalent. Approximately, 62% recommend a “hold,” and the rest recommended a “sell.” Analysts’ consensus target price for RES was ~$25 on December 19. RES is currently trading near $25.2, which implies ~1% negative returns over the next 12 months at the current price.

Approximately 24% of the analysts tracking National Oilwell Varco (NOV) have recommended a “buy” or equivalent. Approximately 68% recommend a “hold,” and the rest recommended a “sell.” Analysts’ consensus target price for NOV was ~$34.3 on December 19. NOV is currently trading near $33.6, which implies ~2% returns over the next 12 months at the current price.

Approximately 65% of the sell-side analysts tracking Fairmount Santrol Holdings (FMSA) have recommended a “buy” or equivalent, and ~29% have recommended a “hold.” Approximately 6% of the analysts have rated FMSA a “sell.” Analysts’ consensus target price for FMSA was near $5.8 on December 19. FMSA is currently trading near $5.3, which implies ~11% upside over the next 12 months at the current price.

Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer. Also read Market Realist’s Which Oilfield Service Stocks Look Attractive in 4Q17?.

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