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Returns of Top Five Oilfield Companies by Expected Revenue Growth

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Comparing returns

In this series, we’ve been looking at the top five OFS (oilfield equipment and services) companies by Wall Street analysts’ expected sequential revenue growth in the second quarter. In this part, we’ll look at their stock returns YTD (year-to-date).

McDermott International (MDR), which sell-side analysts expect to achieve the highest revenue growth in the second quarter, has produced 3.6% YTD returns as of June 12. Helix Energy Solutions Group (HLX) underperformed MDR, with 1.5% YTD returns. U.S. Silica Holdings (SLCA) underperformed HLX with -8.9% YTD returns.

Oil States International (OIS) has been the strongest performer among the top OFS revenue growers in 2018. YTD, OIS has had 16.6% returns as of June 12. Carbo Ceramics (CRR) was the weakest performer among our top OFS companies, with -11.8% YTD returns. Three of the five companies produced positive returns YTD.

Stocks versus ETFs

In comparison, the Energy Select Sector SPDR ETF (XLE) has decreased 6.2% YTD. XLE tracks an index of US energy companies in the S&P 500 Index. The VanEck Vectors Oil Services ETF (OIH) has had 2.7% YTD returns. OIH tracks an index of 25 OFS companies. The SPDR S&P 500 ETF (SPY), representing the broader equity market, has had 4.5% returns YTD. OIS has outperformed the OFS industry, the broader energy industry, and the market so far in 2018.

Next, let’s look at short interest in the top OFS stocks with the highest expected revenue growth.

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