Latest news with #OilStatesInternational
Yahoo
28-05-2025
- Business
- Yahoo
Zacks Industry Outlook Highlights Natural Gas Services, Solaris Energy and Oil States International
Chicago, IL – May 28, 2025 – Today, Zacks Equity Research discusses Natural Gas Services Group, Inc. NGS, Solaris Energy Infrastructure, Inc. SEI and Oil States International, Inc. OIS. Industry: Oil & Gas Equipment Link: Rising oil production that may surpass the yearly demand growth of the commodity will probably drag down prices. This will hurt demand for drilling and production equipment as explorers and producers will be reluctant to produce more of the commodity, creating a challenging outlook for the Zacks Oil and Gas- Mechanical and Equipment industry. Companies striving to navigate these industry challenges include Natural Gas Services Group, Inc., Solaris Energy Infrastructure, Inc. and Oil States International, Inc. The Zacks Oil and Gas - Mechanical and Equipment industry comprises companies that provide necessary oilfield equipment — production machinery, pumps, valves and several other drilling appliances like rig components — to exploration and production companies. These help upstream energy players extract crude oil and natural gas from fields, both onshore and offshore. Hence, the well-being of oilfield equipment businesses is positively correlated to expenditures by upstream companies. These companies receive deals from integrated energy firms and independent as well as national oil and gas companies. Oilfield equipment providers also design, manufacture, engineer and install products used to treat and process crude oil, natural gas and others. Their products comprise gadgets and instruments for gas compression packages and water treatment works. : The U.S. Energy Information Administration ('EIA') is expecting the West Texas Intermediate Spot Average price for 2025 and 2026 at $61.81 per barrel and $55.24 per barrel, respectively. The prices are significantly lower than the $76.60 per barrel price for 2024. EIA cited the increasing production volumes of the commodity to overcome yearly crude oil demand growth as the reason for lower oil prices. Thus, a lower pricing environment of the commodity is unlikely to provide incentives for more exploration and production activities, consequently leading to diminished demand for drilling and production equipment of companies in the industry. Exploration and production companies are becoming more conservative in their capital expenditures for upstream operations. This shift is driven by shareholders who want these companies to prioritize returning capital over increasing spending on production. This trend is likely to diminish demand for drilling and production equipment. : The composite stocks belonging to the industry have consistently been generating lower dividend yield than the oil energy sector over the past five years. Thus, investors looking for a healthy dividend yield may avoid stocks belonging to the industry. The Zacks Oil and Gas - Mechanical and Equipment is a 11-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #206, which places it in the bottom 16% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Before we present a few stocks that you may want to consider, let's take a look at the industry's recent stock market performance and valuation picture. The Zacks Oil and Gas - Mechanical and Equipment industry has outperformed the broader Zacks Oil - Energy sector but lagged the Zacks S&P 500 composite over the past year. The industry has declined 3.9% in the past year compared with the broader sector's fall of 4.6% and the S&P 500's 10.8% increase. Since oilfield equipment providers are debt-laden, valuing them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio makes sense. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses. On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 5.66X, lower than the S&P 500's 16.39X. However, it is higher than the sector's trailing 12-month EV/EBITDA of 4.59X. Over the past five years, the industry has traded as high as 43.82X and as low as 1.11X, with a median of 10.37X. Natural Gas Services: The United States is sending more natural gas overseas as Liquefied Natural Gas (LNG). To do this, gas needs to travel through pipelines to coastal export terminals. This creates higher demand for Natural Gas Services' compression equipment to push the gas through the pipelines. So, as more LNG is exported and more pipelines are built, companies like NGS, sporting a Zacks Rank #1 (Strong Buy), benefit by renting out more of their compression machines. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Solaris Energy: Despite a dip in oil prices, Solaris Energy, carrying a Zacks Rank #3 (Hold), hasn't experienced any major decline in business. It anticipates stable activity through the early part of the second quarter, with its logistics systems, key to supporting drilling and fracking, still in strong demand. In the first quarter, system activity rose more than 25%, and its top-fill systems were nearly fully deployed. While some operators may reduce activity later in the year if oil prices remain soft, SEI's oil and gas logistics business has proven resilient, contributing to more stable and predictable income. Oil States International: Oil States International, carrying a Zacks Rank 3, is getting a lot of new business from customers outside the United States, especially from companies working in deep ocean areas to extract oil and gas. In fact, it received more orders than it delivered this past quarter, 1.5 times more, which is a great sign. That means more activities and cash flow are lined up for the future. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oil States International, Inc. (OIS) : Free Stock Analysis Report Natural Gas Services Group, Inc. (NGS) : Free Stock Analysis Report Solaris Energy Infrastructure, Inc. (SEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
07-05-2025
- Business
- Yahoo
Oil States International, Inc. (OIS): Compelling yet Underappreciated Opportunity?
We came across a bullish thesis on Oil States International, Inc. (OIS) on Substack by Unemployed Value Degen. In this article, we will summarize the bulls' thesis on OIS. Oil States International, Inc. (OIS)'s share was trading at $3.61 as of April 28th. An oil and gas engineer looking at a production tree, inspecting its pressure control equipment. Oil States International (OIS) represents a compelling yet underappreciated opportunity in the oilfield services sector, particularly at a time when investor sentiment toward energy equities is wavering. With oil prices dipping below $65 per barrel despite a weakening U.S. dollar, the macro backdrop feels counterintuitive — cheaper oil in a cheaper dollar. However, such dislocations often present attractive entry points. The cure for low prices is low prices, and as production naturally declines (especially in shale, which sees annual depletion rates north of 20%), supply eventually constricts, creating upward pressure on prices. Matador Resources' recent rig count reduction, enabled by flexible service contracts, signals that the pullback is already in motion. Meanwhile, the International Energy Agency, even with a track record of underestimating demand, still expects oil consumption to increase in 2025. Against this cyclical setup, oilfield services are positioned to benefit as supply and demand eventually rebalance. Rather than betting on fast-depleting shale producers with volatile cash flows, OIS offers a more durable industrial angle. Though OIS may initially appear unattractive due to GAAP net losses driven by non-cash charges such as asset impairments and goodwill writedowns, a closer look reveals solid cash generation. The company has posted positive operating cash flow in each of the last three years—$32 million in 2022, $56 million in 2023, and $45 million in 2024—despite the challenging operating environment. This cash has funded debt reduction and share repurchases, with roughly $18 million used to buy back stock and another $10 million directed at lowering debt. With a market cap around $216 million, OIS isn't gushing cash, but it is self-funding and returning capital to shareholders, a rare feat for a small-cap industrial in a cyclical trough. OIS is a hybrid operator with exposure to both offshore and onshore markets. Over half of its revenue comes from offshore services, including engineered components such as flexible bearings, connection systems, and subsea pipeline parts. The offshore business, still recovering from the 2014 oil price collapse, has the potential to grow significantly if major upstream investment resumes. While supermajors have remained conservative on offshore capital expenditures, their need for heavier crude and the relatively low marginal cost (often sub-$55 per barrel) means that when prices stabilize, investment will return. Onshore, OIS serves the shale patch with specialized equipment like crown valves, downhole gas separators, and perforating systems. As shale development matures, operators are increasing their use of complex engineered products. The number of perforating charges and guns per well has more than tripled over the past decade, even as rig counts remain subdued, creating demand tailwinds for OIS's razor-blade business model.
Yahoo
04-05-2025
- Business
- Yahoo
Undervalued Penny Stocks To Consider In May 2025
The market has climbed 1.8% in the last 7 days and is up 9.5% over the last 12 months, with earnings expected to grow by 14% per annum over the next few years. In such a climate, identifying stocks with strong fundamentals can be key to uncovering hidden value. Though often seen as a relic of past trading days, penny stocks—typically representing smaller or newer companies—still offer potential for significant returns when backed by solid financials. Name Share Price Market Cap Financial Health Rating Safe Bulkers (NYSE:SB) $3.37 $355.42M ★★★★☆☆ IDenta (OTCPK:IDTA) $0.324 $1.31M ★★★★★★ Tuya (NYSE:TUYA) $2.31 $1.27B ★★★★★★ Perfect (NYSE:PERF) $1.84 $191.48M ★★★★★★ Smith Micro Software (NasdaqCM:SMSI) $1.06 $17.59M ★★★★☆☆ Flexible Solutions International (NYSEAM:FSI) $3.75 $47.68M ★★★★★★ Imperial Petroleum (NasdaqCM:IMPP) $2.50 $77.35M ★★★★★★ BAB (OTCPK:BABB) $0.81485 $5.95M ★★★★★★ Lifetime Brands (NasdaqGS:LCUT) $3.53 $81.59M ★★★★★☆ New Horizon Aircraft (NasdaqCM:HOVR) $0.497 $15.88M ★★★★★★ Click here to see the full list of 750 stocks from our US Penny Stocks screener. Let's dive into some prime choices out of the screener. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Lexeo Therapeutics, Inc. is a clinical-stage genetic medicine company addressing hereditary and acquired diseases with high unmet need in the United States, with a market cap of approximately $130.46 million. Operations: Lexeo Therapeutics, Inc. currently has no reported revenue segments. Market Cap: $130.46M Lexeo Therapeutics, with a market cap of US$130.46 million, remains pre-revenue but has shown promising clinical progress. Recent positive interim data from its LX2006 trials for Friedreich ataxia cardiomyopathy supports advancement to a registrational study by early 2026. Despite being debt-free and having short-term assets exceeding liabilities, the company's cash runway is limited to just over a year if current cash flow trends persist. While losses have increased over the past five years, Lexeo's management is relatively new and earnings are forecasted to decline further in the near term. Get an in-depth perspective on Lexeo Therapeutics' performance by reading our balance sheet health report here. Learn about Lexeo Therapeutics' future growth trajectory here. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Oil States International, Inc. operates globally through its subsidiaries, offering engineered capital equipment and consumable products for the energy, industrial, and military sectors with a market cap of approximately $217.68 million. Operations: No specific revenue segments are reported for Oil States International, Inc. Market Cap: $217.68M Oil States International, with a market cap of US$217.68 million, has demonstrated financial resilience despite being unprofitable. The company reported first-quarter revenue of US$159.94 million and a net income of US$3.16 million, marking an improvement from the previous year's loss. Its short-term assets significantly exceed both short- and long-term liabilities, ensuring liquidity stability. While its share price remains highly volatile and the return on equity is negative at -1.65%, Oil States maintains a satisfactory net debt to equity ratio of 8.8%. Recent management changes include appointing Deloitte & Touche LLP as auditors for fiscal year 2025. Jump into the full analysis health report here for a deeper understanding of Oil States International. Assess Oil States International's previous results with our detailed historical performance reports. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Tecogen Inc. designs, manufactures, markets, and maintains cogeneration products for various sectors in the United States and has a market capitalization of $61.71 million. Operations: The company's revenue is derived from three segments: Products ($4.44 million), Services ($16.07 million), and Energy Production ($2.10 million). Market Cap: $61.71M Tecogen Inc., with a market cap of US$61.71 million, operates in the cogeneration sector and faces challenges typical of penny stocks. Although unprofitable, it maintains a solid financial position with short-term assets exceeding both short- and long-term liabilities, and more cash than total debt. Recent earnings showed a slight revenue decline to US$22.62 million for 2024, alongside an increased net loss of US$4.76 million. The company has filed for a shelf registration to raise approximately US$5.92 million through common stock offerings related to its ESOP plan, indicating potential future capital raising efforts amidst its volatile share price environment. Unlock comprehensive insights into our analysis of Tecogen stock in this financial health report. Understand Tecogen's track record by examining our performance history report. Navigate through the entire inventory of 750 US Penny Stocks here. Looking For Alternative Opportunities? The end of cancer? These 23 emerging AI stocks are developing tech that will allow early idenification of life changing disesaes like cancer and Alzheimer's. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGM:LXEO NYSE:OIS and OTCPK:TGEN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Is Oil States International, Inc. (OIS) the Best Oil and Gas Penny Stock to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where Oil States International, Inc. (NYSE:OIS) stands against other best oil and gas penny stocks to invest in now. The oil and gas sector faces a pivotal moment in 2025 as it deals with complex dynamics from global tensions, evolving policy directions, and rising innovation. The stable pricing in 2024, after many decades, now faces hurdles due to geopolitical stresses, energy transition demands, and economic shifts. Companies are keeping tight capital control while boosting tech productivity, as analysts predict oil will stay between $70 and $80 per barrel. However, geopolitical instability and unpredictability could push prices higher. Despite these obstacles, operations have advanced as the sector's capital spending has increased 50% from 2020. Meanwhile, returns are on the upswing as businesses focus on high-performing assets and refine their portfolios. Many companies are betting on digital and green tech—carbon capture, hydrogen, and data-driven exploration—as part of a wider clean energy push. Global oil trade issues have shifted focus to natural gas as a second key revenue source, thus, gas prices have jumped lately. According to Yahoo Finance data, LNG futures are up nearly 40% in six months and 91.65% year-over-year at Henry Hub, thanks to low stockpiles, winter demand, and rising LNG exports. Although market instability persists, as recent OPEC+ supply boost and US-China trade tensions have pushed down crude prices. As of April 2025, West Texas Intermediate (WTI) crude sits near a three-year low of $61.5 per barrel. The US Energy Information Administration (EIA) sees an average of $63.88/bbl this year, further dropping to $57.48 in 2026. This decline, plus tariff hurdles and export problems, might squeeze US oil output since profit thresholds sit between $61-$70/bbl. This shows how even major forecasters are scaling back amid trade fights and project holdups. Now, the trend has shifted to natural gas as the growth driver for the oil and gas industry. Europe remains central to global LNG trade, taking 55% of US LNG exports in 2024, per LSEG data. As seen last December, 69% of US LNG shipments (5.84 MT) went to Europe, up from November's 5.09 MT, driven by winter needs and limited Russian supply. As trade tensions add complications, China's 15% tariff on US LNG threatens new deals despite existing contracts. The outlook is mixed but hopeful as oil demand rebounds post-pandemic and a global boost in energy diversification. Although solar energy helps reduce fossil fuel dependence, it won't replace it entirely, which shows the significance of a harmonized energy mix. In the same way, the main alternatives—solar, wind, and nuclear—each have scaling or consistency limits. Oil and gas, especially natural gas, remain vital to global growth and energy security, creating openings for agile, cost-effective penny stocks. While major companies grab headlines with billion-dollar projects, penny stocks—small-cap oil and gas companies trading under $5—attract interest for their high-growth potential. We first sifted through ETFs, online rankings, and internet lists to compile a list of the best oil and gas stocks under $5. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. For tied stocks, we ranked them by the value of their hedge fund stakes. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An offshore oil installation platform, its production arm reaching out to the horizon. Number of Hedge Fund Holders: 21 Share Price as of April 16: $3.42 Oil States International, Inc. (NYSE:OIS) supplies advanced equipment and products for oil and gas operations like completion, production, and offshore drilling. The company works across three segments: Completion and Production Services, Downhole Technologies, and Offshore Manufactured Products. It serves energy, industrial, and defense markets worldwide, offering solutions including riser systems, perforation tools, and subsea infrastructure. In Q4 ending December 31, 2024, Oil States International, Inc. (NYSE:OIS) reported $165 million in revenue and $19 million in adjusted EBITDA, driven by robust offshore demand. It beat expectations with $0.09 earnings per share while generating $18 million in operating cash and gaining $15.3 million pre-tax from selling an unused facility. For 2025, the company forecasts revenue of $700-735 million, EBITDA of $88-93 million, free cash flow of $40-50 million, and about $25 million in CapEx. Furthermore, Oil States' offshore-manufactured products grew 5% in Q4, bringing in $107 million. International and offshore revenue makes up 72% of the company's portfolio, while U.S. land operations account for just 28%, demonstrating a critical focus on profitable markets. Oil States International, Inc. (NYSE:OIS) cut underperforming U.S. operations, trimming $41 million in revenue for 2024 but boosting efficiency. Oil States International, Inc. (NYSE:OIS) is pushing tech-driven growth through managed pressure drilling systems and flex joint connectors. Its open architecture perforating tools are gaining ground in Latin America and Eastern markets. With solid financials and growing international contracts, this stock stands out among the best penny stocks. Overall, OIS ranks 5th on our list of best oil and gas penny stocks to invest in now. While we acknowledge the potential of OIS as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Why Oil States International, Inc. (OIS) is Losing This Week
We recently published a list of Energy Stocks that are Losing This Week. In this article, we are going to take a look at where Oil States International, Inc. (NYSE:OIS) stands against other energy stocks that are crashing this week. The energy industry has been absolutely crushed in the ongoing bloodbath faced by the overall market, but one sector that has been hit particularly hard is that of the oilfield services sector. On one side, the imposition of the 25% tariff on steel and aluminum has already led to an estimated 4% increase in costs for drilling a well. On the other hand, global oil prices have plunged to a multi-year low, further decreasing margins for producers and forcing them to slow down drilling activities. A recently published survey by the Federal Reserve Bank of Dallas has revealed that the US oil industry needs prices between $61 and $70 per barrel to be profitable. However, the ongoing trade war has pushed WTI prices down to the $57 range. Following President Trump's scathing tariff announcements last week, Morningstar has reduced its fair value estimates on the three biggest oilfield services companies, expecting them to report a revenue drop of between 2% and 3% this year. The report further states that each dollar lost in revenue translates into an operating profit loss of between $1.25 and $1.35. Hence, it comes as no surprise that a large majority of the Energy Stocks that Crashed This Week belong to the energy services industry. An offshore oil installation platform, its production arm reaching out to the horizon. To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between April 1 to April 8, 2025. Following are the Energy Stocks that Lost the Most This Week. The stocks are ranked according to their share price decline during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Share Price Decline Between Apr. 1 and Apr. 8: 37.5% Oil States International, Inc. (NYSE:OIS) is a global provider of manufactured products and services for the oil and natural gas industry, as well as in the industrial and military sectors. Oil States International, Inc. (NYSE:OIS) continues to decline due to the overall pressure faced by the oilfield services industry. The tariffs on raw material, coupled with the declining prices of oil and a potential decrease in demand, have created a bearish sentiment for the industry. Moreover, OIS reported mixed results in Q4 2024 as its revenue of $164.6 million missed estimates by $8.73 million. Overall, OIS ranks 3rd on our list of the energy stocks that lost the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
