10 Most Undervalued Canadian Stocks to Buy According to Wall Street Analysts

4. Precision Drilling Corp. (NYSE:PDS)

Forward P/E Ratio as of April 21: 9.39

Number of Hedge Fund Holders: 15

Average Upside Potential as of April 21: 53.25%

Precision Drilling Corp. (NYSE:PDS) is a drilling company that provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries. It operates through Contract Drilling Services and Completion & Production Services segments.

In 2024, the company experienced a 12% year-over-year increase in drilling activity in Canada. Precision also reported near full utilization of its Canadian Super Series rigs, which highlighted the demand for its high-specification drilling assets in the region. In Q4, Precision’s drilling activity in Canada averaged 55 rigs, which is an increase of 1 rig sequentially and 1 rig year-over-year.

The daily operating margins in Canada during Q4 were $14,559, which was an increase of ~$2,131 year-over-year. While this was slightly below guidance of $15,000 per day, these margins included ~$4 million in rig reactivation costs, which, if excluded, would have resulted in margin performance exceeding guidance. For Q1 2025, Precision Drilling Corp. (NYSE:PDS) anticipates its Canadian drilling margins to remain consistent with Q4 2024, in the range of $14,500 to $15,000 per day.