TSE:PD

Precision Drilling (PD.TO)

129.84
-7.49 (5.45%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
187 watching
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Investor Insights
star iconJun 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.

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Consensus
Positive
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Valuation
Undervalued
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SLB
WEAK BUY
The great thing about an oil service company is that oil companies are spendthrift. When they have money, they spend it. Good quality. Where oil stocks are volatile, this will be doubly volatile.
WAIT
Dropping basically because of the market correction. Pull back on drilling for natural gas wells will affect them negatively to some extent. Only a temporary phenomenon. Well managed, well run. There will be some good buying opportunities in the next several months.
DON'T BUY
A top quality company. Sold all its international assets. Would question where the growth would come from. Prefers Total Energy (TOT.UN-T)
BUY
Yield is in excess of 10%. You have to be prepared for some volatility in the drilling sector. He is looking very carefully at this one and will probably buy.
TOP PICK
Yield is over 9%. The largest driller in Canada. Great margins.
BUY ON WEAKNESS
If gas prices continue to be weak through the summer, it will have a negative effect on the price. You have all summer to pick away at it. Try to pick up in the $36/38 area.
BUY
Payout ratio is creeping up a little bit to about 80%. They should do well.
BUY
A well-managed operation. Drilling for natural gas in western Canada will continue to be strong. 10% yield.
WEAK BUY
Although the drillers don't have the price exposure to oil, they declined the same as the oil companies. Not a bad entry point. Not many acquisitions it can make so won't have much growth.
BUY
Very conservative payout ratio. This is the Cadillac of drillers in the western sedimentary basin. Business should be very solid.
BUY ON WEAKNESS
One of the largest drilling companies in Canada. Just had a great quarter. Expanding into the US. There is a potential for a soft summer in drilling as gas has dropped. Buy on weak days.
TOP PICK
Really likes the oil/gas servicing side. This is a huge trust. They've been able to raise their rates. Have raised their payout. Yield is over 8%. If it dropped in price, he would add more to his portfolios.
PAST TOP PICK
(A Top Pick Feb 17/06. Up 12%.) Tremendous fundamentals. The largest oil services in Canada.
TOP PICK
Has a yield of 8%. Has growth. Have increased their payout. Have just contracted to build more rigs and move them to the US.
BUY
Just reported very solid results. Announced a 15% increase in distributions. Planning on expanding into the US. Has some good upside but would start being cautious and not putting too much money into it.
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