14 Best American Energy Stocks To Buy According to Analysts

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

Number of Hedge Fund Investors  in Q1 2024: 15

Average Analyst Share Price Target Upside: 65.77%

Average Analyst Share Price Target: $28.33

Dril-Quip, Inc. (NYSE:DRQ) is a backend oil company that provides drilling equipment and other products and services for offshore and onshore oil production. Its shares are down by 65% over the past five years, despite the fact that its revenue has grown by 16% on an absolute basis between 2020 and 2023. Dril-Quip, Inc. (NYSE:DRQ) is yet to consistently display profitability though, since its 2023 results were the first time since 2020 that it turned a small profit of $604,000. The firm has strong industrial partnerships though, and it works with the Saudi oil giant Aramco and the Brazilian state owned oil company Petrobras. Dril-Quip, Inc. (NYSE:DRQ) ended its Q3 2023 with $200 million in backlog, which provides some visibility into its future revenue especially since its quarterly revenue typically ranges between $100 million to $140 million. Therefore, some key watch points for the stock include the health of Dril-Quip, Inc. (NYSE:DRQ)’s existing partnerships and new long term deals. Any weaknesses on these fronts can translate into headwinds for the share price.