Precision Drilling (PD.TO) Buy, Sell or Hold

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Precision Drilling (PD.TO)

129.84

-7.49 (5.45%)

as of Jun 5, 2026, 8:00:00 pm Market Open.

187 watching

Investor Insights

Jun 6, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Experts are optimistic about Precision Drilling (PD-T) moving forward into 2027, noting that the increase in activity in the oil market suggests a potential price rise of 5-10%. They emphasize that pure play oil producers are the best investment choice given current market conditions. The stock has shown a significant rally, potentially driven by the sanctioning of LNG Canada and the company's achievement of its debt targets, leading to a strategic pivot towards returning 50% of capital to shareholders. Furthermore, it's worth noting that Precision Drilling's free cash flow yield is projected to be around 20% next year while also implementing a buyback of 10% of its shares. Although the current spreadsheet calculations appear positive, some experts feel it's still not the right time to invest in service stocks given the cyclical nature of the industry.

Consensus

Positive

Valuation

Undervalued

Similar

SLB

BUY ON WEAKNESS

Expect less drilling activity but they will survive. They have first-class equipment in the US and Canada. It's a higher-beta name, thus more speculative. Buy this on weakness. He expects drilling to pick up in 2021.

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DON'T BUY

This was his largest holding as of a week ago, but he sold out last week as oil producers getting hit hard. With oil imploding, he expects capex budgets will get slashed. It is difficult to see how this stock would do well, when producers are cutting back.

TOP PICK

There is a base level of activity to just maintain production. The stock price is already demonstrating a poor drilling season outlook. They could privatize the company in 2.5 years on current cash flow. An outlook for $60 oil will lead to an uptick in drilling activity from here. Yield 0% (Analysts’ price target is $2.89)

DON'T BUY

The chart is pretty ugly right now and he does not see the bear trend ending yet. He wants to see a base form first.

WATCH

The spending outlook for drilling in 2020 is very poor. Companies can not justify spending more to just keep production flat, especially when the market will not give you credit for it. Companies should be putting free cash flow into share buybacks. It is negative for service companies. He wonders when this has been fully discounted in the share price. He is more tempted to buy a producer.

BUY ON WEAKNESS

It came out of the index. They are paying down debt. He'd like to see it paid down a little more. When the rig count picks up next year, he thinks the stock is very cheap here. It is more speculative because of the debt load.

COMMENT

They're in a rough business (oil) that won't turn around for a while. But you can make money on bounces like today.

DON'T BUY

Doesn't like it. Carries heavy debt from recent acquisitions. The 10-year chart is very negative. The oil industry is shifting to fracking and using PD's drilling less and less. You buy this if you think oil returns to $100. He believes oil is rangebound at $40-80.

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DON'T BUY

They have done a good job. They are knocking debt down. The problem is that the rig count coming out every Friday is coming down from where it was a year ago.

WEAK BUY

Huge debt load, but is on his watch list. It could be a tax loss seller. The sector has been beaten down. It could be a good sign for investors though. Look at what investors are doing and you'll see that it might not be time.

RISKY

Revenues up 9%. US side doing well. Paid down debt in first half. Cheap. Q3 won't be much better. More debt than people like. For risk-oriented accounts, could go higher. He has a $5 target. When recovery comes in Canada, they're the pre-eminent driller. No dividend.

PAST TOP PICK

(A Top Pick May 30/18, Down 52%) It is not working out at all. It still has potential in the portfolio and he has not bailed out of it. The leverage on the industry is huge. It is a high risk / high reward play. The payout down the road on a small part of your portfolio could be quite huge.

TOP PICK

They have been decimated. They are the same price as in December but oil has gone up. They paid up a ton of debt since December. The risk/reward is there to buy this name. (Analysts’ price target is $4.63)

DON'T BUY

He does not own any drilling stocks. He thinks producers are not as focused on increasing production at this time. This space is too volatile to take a position in. He would prefer to own producers.

WEAK BUY

They've had a good rebound. He has a $4.50 target as a buy, but the sector is weak. Doesn't own any operators now. Buy the oil producers instead. If you own this, then average down. They just announced the sale of non-core assets, which he likes.

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Precision Drilling (PD.TO)