Zacks Investment Research
14 Aug 2026, 13:51 UTC · 11w ago
Impact · against what's priced in
The industry outlook is bearish due to declining 2026 earnings estimates and high relative valuations, but HP, NBR, and PTEN are positioned as exceptions. These three firms benefit from a structural supply shortage of 'super-spec' rigs, which supports their pricing power despite broader sector headwinds.
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What the story claims
4 claims · scored −1 bearish … +1 bullish
The Oil and Gas - Drilling industry is experiencing a sharp decline in 2026 earnings estimates.
So whatSignificant downward revisions in future earnings estimates typically lead to valuation compression and lower stock prices.
More negative than 95% of claims this week
The Oil and Gas - Drilling industry is currently trading at a premium valuation compared to both the broader energy sector and the S&P 500.
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5 related stories
HP is highlighted as a standout due to its advanced asset base and improving earnings prospects in an environment where super-spec rig supply remains tight.
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NBR is positioned for outperformance through technology investments and advanced assets that allow it to buck the general industry trend of declining earnings estimates.
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PTEN stands out through its international opportunities and advanced assets, providing a buffer against the sector's overall valuation premium and earnings revisions.
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Scored by the NIS engine · methodology.
More negative than 87% of claims this week
Supply for 'super-spec' advanced rigs remains tight, supporting utilization rates, day rates, and longer contract durations.
So whatTight supply of high-end assets provides pricing power and revenue stability for operators with advanced fleets.
More positive than 76% of claims this week
Commodity price volatility and geopolitical tensions pose risks to drilling budgets and international projects.
More negative than 79% of claims this week
Which stocks this story touches
More positive than 75% of ticker scores this week
Highlighted as a standout company with advanced assets and improving earnings prospects.
More positive than 75% of ticker scores this week
Highlighted as a standout company with advanced assets and improving earnings prospects.
More positive than 75% of ticker scores this week
Highlighted as a standout company with advanced assets and improving earnings prospects.
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Reuters
9h ago
Reuters
1h ago
More positive than 55% of relationship scores this week
[mutual] Both companies operate within the Zacks Oil and Gas - Drilling industry providing rigs on a contractual basis.
More positive than 55% of relationship scores this week
[mutual] Both companies operate within the Zacks Oil and Gas - Drilling industry providing rigs on a contractual basis.
−0.2%
Price flat so far
$42.99 vs $43.07 close before publication (Aug 13) · not market-adjusted
HP chart →−0.6%
Price is moving against the score
$90.78 vs $91.35 close before publication (Aug 13) · not market-adjusted
NBR chart →+22.2%
Price agrees with the score
$13.32 vs $10.90 close before publication (Aug 13) · not market-adjusted
PTEN chart →
