10 Best Oilfield Services Stocks to Buy Now

4. Newpark Resources Inc (NYSE:NR)

Hedge Funds Holding Stakes: 24

Stock Upside Potential as of 12/08/2024: 54.36%

Newpark Resources Inc (NYSE:NR) is one of the key players in the oilfield and service sector, which is focused on providing product rentals and services to the oil and natural gas exploration and production industries. Its Fluid Systems segment provides customers with drilling completion and related technical services.

Newpark Resources Inc (NYSE:NR) delivered solid second-quarter results, whereby Industrial Solution segment revenue increased 40% on an organic basis, totaling $179 million. Operating net income more than doubled to $13.3 million from $5.9 million a year ago.

The growth in Industrial Solutions’ income was fueled by the growth of its fleet and a persistent move by customers from traditional, wood-based mats to our DURA-BASE composite matting system. Sales of products hit a record high in the second quarter, and rental income saw a 9% rise compared to the same period last year.

Investment strategy remains focused on putting money into the rental vehicle fleet segment, returning profits through buying back our own shares, and seizing growth opportunities through both current and related worksite access markets. The business produced free cash flow of $22 million in the second quarter and saw its net leverage drop to 0.3 xs by June 30, 2024.

The stock is currently rated as a Buy with an average price target of $11.50, implying a 54.36% upside potential from current levels.

The number of hedge funds holding stakes in Newpark Resources Inc (NYSE:NR) stood at 24 out of 920, tracked by Insider Monkey as of the end of the second quarter.