10 Best Oilfield Services Stocks to Buy Now

1. Dril-Quip, Inc. (NYSE:DRQ)

Hedge Funds Holding Stakes: 14

Stock Upside Potential as of 12/08/2024: 113.83%

Headquartered in Houston, Texas, Dril-Quip, Inc. (NYSE:DRQ) is one of the best oilfield services stocks to buy now as it offers exposure to the design, manufacturing, and sale of engineered drilling and production equipment for offshore and onshore applications.

The firm’s primary offerings include subsea and above-ground wellheads, specialized connectors, and related pipes. Additionally, Dril-Quip, Inc. (NYSE:DRQ) offers technical support, services for rework and reconditioning, and the rental or purchase of tools for installing and retrieving its products; services for the installation.

Dril-Quip, Inc. (NYSE:DRQ) ‘s stock sentiments received a boost, delivering impressive second-quarter results whereby earnings more than doubled to 10 cents a share from 3 cents a share a year ago. Revenues totaled $120.3 million from $89.6 million a year ago.

Dril-Quip’s strategic initiatives include diversifying its business mix towards onshore operations and expanding its global presence. The proposed merger with Innovex Downhole Solutions is expected to deliver nearly $30 million in annual cost savings and additional revenue synergies, enhancing shareholder value.

While Dril-Quip, Inc. (NYSE:DRQ) is down by about 30% for the year, analysts remain upbeat about its long-term prospect, with a $30.50 price target implying a 113.83% upside potential from current levels. As of the end of the second quarter, 14 hedge funds out of 920 tracked by Insider Monkey held stakes in the company.

The best oilfield services stocks offer one of the best ways of diversifying an investment portfolio in the energy sector. However, given that the artificial intelligence arms race is just starting, under-the-radar AI stocks are trading at highly discounted valuations with more incredible promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than the top activist investment plays, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.