Sectors & IndustriesEnergyOil & Gas Drilling

Best Oil & Gas Drilling Stocks to Buy Now (2023)

Top oil & gas drilling stocks in 2023 ranked by overall Zen Score. See the best oil & gas drilling stocks to buy now, according to analyst forecasts for the oil & gas drilling industry.

According to Zen Score, the 3 best oil & gas drilling stocks to buy right now are:

Patterson Uti Energy (NASDAQ:PTEN) is the top oil & gas drilling stock with a Zen Score of 54, which is 27 points higher than the oil & gas drilling industry average of 27. It passed 20 out of 38 due diligence checks and has strong fundamentals. Patterson Uti Energy has seen its stock lose -41.06% over the past year, underperforming other oil & gas drilling stocks by -8 percentage points.

Patterson Uti Energy has an average 1 year price target of $18.00, an upside of 63.04% from Patterson Uti Energy's current stock price of $11.04.

Patterson Uti Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Patterson Uti Energy, 71.43% have issued a Strong Buy rating, 0% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Noble (NYSE:NE) is the second best oil & gas drilling stock with a Zen Score of 46, which is 19 points higher than the oil & gas drilling industry average of 27. It passed 15 out of 33 due diligence checks and has strong fundamentals. Noble has seen its stock return 10.57% over the past year, overperforming other oil & gas drilling stocks by 44 percentage points.

Noble has an average 1 year price target of $51.50, an upside of 26.23% from Noble's current stock price of $40.80.

Noble stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Noble, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Precision Drilling (NYSE:PDS) is the third best oil & gas drilling stock with a Zen Score of 42, which is 15 points higher than the oil & gas drilling industry average of 27. It passed 17 out of 38 due diligence checks and has strong fundamentals. Precision Drilling has seen its stock lose -43.91% over the past year, underperforming other oil & gas drilling stocks by -11 percentage points.

Precision Drilling has an average 1 year price target of $91.00, an upside of 97.96% from Precision Drilling's current stock price of $45.97.

Precision Drilling stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Precision Drilling, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 2 oil & gas drilling stocks that have issued dividends in the past year, the 2 oil & gas drilling stocks with the highest dividend yields are:

Helmerich & Payne (NYSE:HP) has an annual dividend yield of 5.09%, which is 1 percentage points higher than the oil & gas drilling industry average of 3.81%. Helmerich & Payne's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Helmerich & Payne's dividend has not shown consistent growth over the last 10 years.

Helmerich & Payne's dividend payout ratio of 48.2% indicates that its dividend yield is sustainable for the long-term.

Patterson Uti Energy (NASDAQ:PTEN) has an annual dividend yield of 2.54%, which is -1 percentage points lower than the oil & gas drilling industry average of 3.81%. Patterson Uti Energy's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Patterson Uti Energy's dividend has shown consistent growth over the last 10 years.

Patterson Uti Energy's dividend payout ratio of 18.2% indicates that its dividend yield is sustainable for the long-term.

Oil & gas drilling stocks were up 6.11% in the last day, and up 3.94% over the last week. Nabors Industries was the among the top gainers in the oil & gas drilling industry, gaining 10.08% yesterday.

Shares of oil and energy stocks are trading higher amid overall market strength on renewed economic optimism following US Senate passage of a debt limit bill and strong US jobs data. Investors also await the upcoming OPEC+ meeting.

Based on WallStreetZen's Valuation Score, the 3 most undervalued oil & gas drilling stocks right now are:

Patterson Uti Energy (NASDAQ:PTEN) is the most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Patterson Uti Energy has a valuation score of 57, which is 34 points higher than the oil & gas drilling industry average of 23. It passed 4 out of 7 valuation due diligence checks.

Patterson Uti Energy's stock has dropped -41.06% in the past year. It has underperformed other stocks in the oil & gas drilling industry by -8 percentage points.

Precision Drilling (NYSE:PDS) is the second most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Precision Drilling has a valuation score of 57, which is 34 points higher than the oil & gas drilling industry average of 23. It passed 4 out of 7 valuation due diligence checks.

Precision Drilling's stock has dropped -43.91% in the past year. It has underperformed other stocks in the oil & gas drilling industry by -11 percentage points.

Noble (NYSE:NE) is the third most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Noble has a valuation score of 43, which is 20 points higher than the oil & gas drilling industry average of 23. It passed 3 out of 7 valuation due diligence checks.

Noble's stock has gained 10.57% in the past year. It has overperformed other stocks in the oil & gas drilling industry by 44 percentage points.