Back to top

Image: Bigstock

Patterson-UTI (PTEN) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Patterson-UTI (PTEN - Free Report) closed at $16.76 in the latest trading session, marking a -0.95% move from the prior day. This move lagged the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.

Coming into today, shares of the provider of onshore contract drilling services had lost 0.47% in the past month. In that same time, the Oils-Energy sector gained 4.55%, while the S&P 500 gained 5.73%.

Investors will be hoping for strength from Patterson-UTI as it approaches its next earnings release, which is expected to be February 8, 2023. The company is expected to report EPS of $0.43, up 213.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $759.51 million, up 62.81% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Patterson-UTI. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 10.86% higher. Patterson-UTI is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Patterson-UTI is holding a Forward P/E ratio of 7.01. Its industry sports an average Forward P/E of 10.87, so we one might conclude that Patterson-UTI is trading at a discount comparatively.

The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PTEN in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Patterson-UTI Energy, Inc. (PTEN) - free report >>

Published in