Sectors & IndustriesEnergyOil & Gas Drilling

Best Oil & Gas Drilling Stocks to Buy Now (2024)

Top oil & gas drilling stocks in 2024 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:

Seadrill (NYSE:SDRL) is the top oil & gas drilling stock with a Zen Score of 37, which is 10 points higher than the oil & gas drilling industry average of 27. It passed 12 out of 33 due diligence checks and has average fundamentals. Seadrill has seen its stock lose -20.31% over the past year, overperforming other oil & gas drilling stocks by 9 percentage points.

Seadrill has an average 1 year price target of $71.00, an upside of 93.14% from Seadrill's current stock price of $36.76.

Seadrill stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Seadrill, 66.67% have issued a Strong Buy rating, 33.33% 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 second best oil & gas drilling stock with a Zen Score of 37, which is 10 points higher than the oil & gas drilling industry average of 27. It passed 15 out of 38 due diligence checks and has average fundamentals. Precision Drilling has seen its stock lose -9.54% over the past year, overperforming other oil & gas drilling stocks by 20 percentage points.

Precision Drilling has an average 1 year price target of $95.00, an upside of 52.05% from Precision Drilling's current stock price of $62.48.

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.

Noble (NYSE:NE) is the third best oil & gas drilling stock with a Zen Score of 33, which is 6 points higher than the oil & gas drilling industry average of 27. It passed 14 out of 38 due diligence checks and has average fundamentals. Noble has seen its stock lose -33.77% over the past year, underperforming other oil & gas drilling stocks by -5 percentage points.

Noble has an average 1 year price target of $54.00, an upside of 57.94% from Noble's current stock price of $34.19.

Noble stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Noble, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% 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 5.54%, which is 1 percentage points higher than the oil & gas drilling industry average of 4.8%. Helmerich & Payne's dividend payout is not stable, having dropped more than 10% two 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 50.3% indicates that its high dividend yield is sustainable for the long-term.

Patterson Uti Energy (NASDAQ:PTEN) has an annual dividend yield of 4.07%, which is -1 percentage points lower than the oil & gas drilling industry average of 4.8%. 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 not shown consistent growth over the last 10 years.

Patterson Uti Energy's dividend payout ratio of 128% indicates that its dividend yield might not be sustainable for the long-term.

Oil & gas drilling stocks were down -3.61% in the last day, and down -7.97% over the last week.

We couldn't find a catalyst for why oil & gas drilling stocks are down.

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

Precision Drilling (NYSE:PDS) is the most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Precision Drilling has a valuation score of 43, which is 26 points higher than the oil & gas drilling industry average of 17. It passed 3 out of 7 valuation due diligence checks.

Precision Drilling's stock has dropped -9.54% in the past year. It has overperformed other stocks in the oil & gas drilling industry by 20 percentage points.

Patterson Uti Energy (NASDAQ:PTEN) is the second most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Patterson Uti Energy has a valuation score of 29, which is 12 points higher than the oil & gas drilling industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Patterson Uti Energy's stock has dropped -48.01% in the past year. It has underperformed other stocks in the oil & gas drilling industry by -19 percentage points.

Seadrill (NYSE:SDRL) is the third most undervalued oil & gas drilling stock based on WallStreetZen's Valuation Score. Seadrill has a valuation score of 29, which is 12 points higher than the oil & gas drilling industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Seadrill's stock has dropped -20.31% in the past year. It has overperformed other stocks in the oil & gas drilling industry by 9 percentage points.