10 Best Oilfield Services Stocks to Buy Now

6. Natural Gas Services Group, Inc. (NYSE:NGS)

Hedge Funds Holding Stakes: 10

Stock Upside Potential as of 12/08/2024: 45.45%

Natural Gas Services Group, Inc. (NYSE:NGS) is an oilfield services company that offers natural gas compression equipment and services to the more significant energy industry in the US. It fabricates and sells natural gas compressors for oil and gas production while providing aftermarket services.

In the first quarter, Natural Gas Services Group, Inc. (NYSE:NGS) delivered a 48% increase in rental revenue that totaled $33.7 million, and net income tripled to $5.1 million or $0.41 per basic share.

Rental fleet utilization is a key factor in assessing Natural Gas Services Group, Inc. (NYSE:NGS) ‘s success. This figure shows the efficiency with which the company uses its rental compressor assets to generate revenue.

It reached highs of 80.8% last year affirming the company’s ability to generate optimum revenues from its assets. Upon examining the company’s revenue growth over the past year, it’s clear that the company experienced an impressive surge of 44%.

This solid recent trend also enabled Natural Gas Services Group, Inc. (NYSE:NGS) to boost its total revenue by 92% over the previous three years. Looking ahead, revenue is expected to increase by 18% in the upcoming year.

Given that the industry is anticipated to only see a growth of 9.5%, Natural Gas Services Group, Inc. (NYSE:NGS) is in a favorable position to achieve a more robust revenue outcome.

The stock commands a consensus Buy rating on Wall Street with a $28 price target, implying a 45.45% upside potential from current levels. Natural Gas Services Group, Inc. (NYSE:NGS) is up by about 26% for the year. 10 out of 920 hedge funds tracked by Insider Monkey held stakes in the company as of the end of Q2 2024.

Here is what Palm Valley Capital Management stated the following regarding Natural Gas Services Group, Inc. (NYSE:NGS):

“The only position negatively impacting full year 2023 returns by at least 10 basis points was Natural Gas Services Group, Inc. (NYSE:NGS). We sold NGS earlier in the year after management laid out a growth plan that included meaningful new borrowings. This violated our internal policy of not holding companies with significant operating and financial risk.”