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Does Wall Street Love the Lowest Cash-Generating Oilfield Stocks?

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Analysts’ recommendations

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NOV has the fewest ‘buy’ recommendations

Approximately 13% of the Wall Street analysts tracking National Oilwell Varco (NOV) have recommended a “buy” or equivalent as of May 18. About 74% have recommended a “hold,” and 13% have recommended a “sell” or equivalent. Analysts’ consensus target price for NOV was $36.30 as of March 23. NOV is currently trading at $43.40. That implies a 16% downside over the next 12 months at its current price.

Recommendations for TS, FTI, and NBR

About 50% of the Wall Street analysts tracking Tenaris (TS) have recommended a “buy” as of May 18. Approximately 44% of sell-side analysts have recommended a “hold,” and 6% have recommended a “sell.” Analysts’ consensus target price for TS was $40.60 as of May 18. It’s currently trading at $40.10. That implies a 1% return over the next 12 months at its current price.

Of the analysts tracking TechnipFMC (FTI), 66% have recommended a “buy” or equivalent. About 22% have recommended a “hold,” and the remaining 12% have recommended a “sell.” Analysts’ consensus target price for FTI was $35.30 as of May 18. It’s currently trading at $34.20. That implies a 3% return over the next 12 months at its current price.

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Of the analysts tracking Nabors Industries (NBR), 66% have recommended a “buy” or equivalent as of May 18. Approximately 34% of the “sell-side” analysts have recommended a “hold,” and none of them have recommended a “sell.” Analysts’ consensus target price for NBR was $9.60 as of May 18. NBR is currently trading at $8.30. That implies a 16% return over the next 12 months at its current price.

WFT has many ‘buy’ recommendations

Approximately 69% of the sell-side analysts tracking Weatherford International (WFT) stock have recommended a “buy” or equivalent for the stock, and 28% have recommended a “hold.” About 3% of the sell-side analysts have rated WFT a “sell.” Analysts’ consensus target price for WFT was $4.37 as of May 18. WFT is currently trading at $3.60. That implies a 22% upside over the next 12 months at its current price.

You can find out more about the OFS industry in Market Realist’s series The Oilfield Equipment and Services Industry: A Primer. You can also read Ranking the Bottom 5 OFS Companies by Market Returns.

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