Helmerich & Payne, Inc. ( HP - Analyst Report ) is a Growth & Income pick that performed well in the past, hitting 52-week highs and currently trades near that level. The company announced solid fiscal first quarter results in late January, noting that operating income for the quarter reached a new record level. HP is yielding 0.4% while the majority of the companies in the oil and gas drilling industry do not pay out a dividend. Helmerich & Payne’s ROE of 22% is higher than the industry average of 21%.

Full Analysis

Helmerich & Payne, Inc. is primarily a contract drilling company, engaging in the contract drilling of oil and gas wells in the United States and internationally. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas.

This Growth & Income pick performed well in the past and continues to hit new 52-week highs, currently trading higher than when the company was featured a little over a month ago. The company’s current near 52-week high share price and strong fundamentals definitely reflect growth.

Regarding fundamental growth, Helmerich & Payne announced solid fiscal first quarter results in late January. HP noted that operating income for the quarter reached a new record level, adding that its continued growth was driven by the U.S. land segment, where revenue days as well as average daily rig revenue and margins were up again sequentially. The strong results more than offset operating income reductions in the company's offshore and international land segments.

The company delivered quarterly earnings per share that exceeded Wall Street estimates by about 5%, and projections for the future are on the rise. Two out of eight covering analysts increased earnings forecasts from last month’s $4.07 per share to $4.11 for the year ending September 2008.

In addition to growth, HP stands out in its industry by also offering income. It is yielding 0.4% while the majority of the companies in the oil industry do not pay out a dividend.

The company’s net profit margin of 26.3% is above the industry average of 16.8%. Helmerich & Payne’s return on equity (ROE) of 22% is also higher than the industry average of 21%.