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 47, which is 19 points higher than the oil & gas drilling industry average of 28. It passed 17 out of 38 due diligence checks and has strong fundamentals. Patterson Uti Energy has seen its stock return 31.68% over the past year, underperforming other oil & gas drilling stocks by -11 percentage points.

Patterson Uti Energy has an average 1 year price target of $18.00, an upside of 23.03% from Patterson Uti Energy's current stock price of $14.63.

Patterson Uti Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Patterson Uti Energy, 70% have issued a Strong Buy rating, 10% have issued a Buy, 20% 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 38, which is 10 points higher than the oil & gas drilling industry average of 28. It passed 15 out of 38 due diligence checks and has average fundamentals. Precision Drilling has seen its stock return 42.61% over the past year.

Precision Drilling has an average 1 year price target of $115.67, an upside of 69.4% from Precision Drilling's current stock price of $68.28.

Precision Drilling stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Precision Drilling, 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.

Noble (NYSE:NE) is the third best oil & gas drilling stock with a Zen Score of 34, which is 6 points higher than the oil & gas drilling industry average of 28. It passed 14 out of 38 due diligence checks and has average fundamentals. Noble has seen its stock return 89.29% over the past year, overperforming other oil & gas drilling stocks by 46 percentage points.

Noble has an average 1 year price target of $60.00, an upside of 17.05% from Noble's current stock price of $51.26.

Noble stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Noble, 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 3 oil & gas drilling stocks that have issued dividends in the past year, the 3 oil & gas drilling stocks with the highest dividend yields are:

Helmerich & Payne (NYSE:HP) has an annual dividend yield of 4.5%, which is 2 percentage points higher than the oil & gas drilling industry average of 2.43%. 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 44.6% indicates that its dividend yield is sustainable for the long-term.

Patterson Uti Energy (NASDAQ:PTEN) has an annual dividend yield of 2.19%, which is the same as the oil & gas drilling industry average of 2.43%. 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 17.2% indicates that its dividend yield is sustainable for the long-term.

Noble (NYSE:NE) has an annual dividend yield of 0.59%, which is -2 percentage points lower than the oil & gas drilling industry average of 2.43%.

Noble's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

Oil & gas drilling stocks were up 1.39% in the last day, and down -6.38% over the last week.

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

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 57, which is 36 points higher than the oil & gas drilling industry average of 21. It passed 4 out of 7 valuation due diligence checks.

Precision Drilling's stock has gained 42.61% in the past year. It has performed in line with other stocks in the oil & gas drilling industry.

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 43, which is 22 points higher than the oil & gas drilling industry average of 21. It passed 3 out of 7 valuation due diligence checks.

Patterson Uti Energy's stock has gained 31.68% 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 29, which is 8 points higher than the oil & gas drilling industry average of 21. It passed 2 out of 7 valuation due diligence checks.

Noble's stock has gained 89.29% in the past year. It has overperformed other stocks in the oil & gas drilling industry by 46 percentage points.