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

The largest drilling company in Canada. They will benefit from the record drilling in Canada. Despite the weakness in gas prices there is still lots of drilling going on. Their payout ratio is a little bit high for a driller at about 71/72%, but their debt levels are acceptable.

BUY

Precision Drilling has continued to do well. It has been quite volatile over the last few days. It is well levered to oil. It is a large provider of drilling equipment in Western Canada. Expecting a good quarter. Payout ratio is at the 80% range. But this is off sided by the fact that they have very little debt.

WEAK BUY

Precision Drilling is a trust. They do appear to be busy. No pull back in the number of wells drilled. Companies in their drilling plans don't look at one week's gas price and pull back the reins. But the market has a short term view, so since the gas prices are weak the trust has not been doing much. He doesn't own anymore. "It is a long term place that you might want to be considering service stocks right now".

BUY ON WEAKNESS

It is large and liquid. They like it because of the Alberta economy which is strong. Yield pay out is 8%. Pay out ratio is around 75-80 %. It is worth $38.00 to 40.00. Buy below $35.00.

WEAK BUY

The stock looks pretty good. Most stocks in that sector look pretty good. It's an oil stock which will be affected by China and India.

TOP PICK

The largest oil field services in Canada. Will benefit strongly from the record drilling activity. 4th quarter results greatly exceeded expectations.

TOP PICK

9% yield. Just came out with a great earnings statement. If you want to participate in the drilling servicing sector this is the way to do it.

DON'T BUY

Has a bit of a premium valuation because it is the gorilla in this space. Prefers Trinidad Energy Services (TDG.UN-T).

BUY

Price gap. Coming back towards that now. Descent buying opportunity.

DON'T BUY

Once they became an income trust, he lost all interest in this company. Hasn't done anything like the oil patch stocks.

TOP PICK

The largest driller with about 230 rigs. Building out about another 15/20 more this year. They have the ability to set prices in the market. Last year they increased the day rates on their rigs by about 15%.

WEAK BUY

Prefers other ways to play the drilling side, but it's a fine company.

HOLD

The largest contract driller in Canada, operating more than 400 rigs. Drilling activity in western Canada will be very intense. Rates are up to 10% higher than last year. If you don't own, try to buy at a lower price.

BUY

It is the largest driller in the western Canadian sedimentary basin. Considered the blue chip in the drilling industry. A reasonable yield of 8.3%. Pays out about 87% of its free cash flow. Planning to spend in capital expenditures about $285 million with over half of it for new equipment.

PAST TOP PICK

(The corporate company was a Top Pick Sept 16/05. Up 51%, but this includes extra pricing from the original company. Not comparing apples to apples.) Likes this name longer term but it is getting pretty expensive. Growth profile will continue.

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Precision Drilling (PD.TO)