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

RISKY

There's considerable upside, but the street is very split on this stock. It's a high-risk/reward stock. This could pay off very well at current prices. They just renewed some contracts and have paid down some debt. In a better oil market, this would be much more valuable.

WATCH

He did a bit of tax loss selling in this sector. You can see that the $3 level is going to be problematic. It touched it in 2017 and a couple of times in 2018. It will bring in more sellers as it gets closer to that level. It is going to try to revisit the $2.26 low. If it gets through $3 it may get to $5.

COMMENT

All the drillers have under performed. This is probably a good entry point -- around 5 year lows. He does not love the sector, but the risk reward is enticing. He owns PD-T right now instead. He would recommend taking money off the table if the stock price strengthens due to the volatility of the energy sector.

COMMENT

It's been in a tough sector for the last couple of years. If you are going to buy these things you should look at it as a trade instead of an investment. You can get a reasonable trade out of some of these stocks. Until we get the pipe and we can sell stuff how much drilling can we do.

WAIT

PD has done relatively well, considering the drillers have been hammered in this sell-off. Need to see this hold at $2.80. There's been heavy tax-loss selling in oil. Don't step until January. See if resistance holds.

DON'T BUY

He hoped they would merge with TDG.UN-T. He had TDG.UN-T on his action alert buy list. Now you have to decide what to do. PD-T is paying down debt but it is still high. The balance sheet is strained The stock price is now washed out enough that he is taking a little bit more positive view of this stock.

DON'T BUY

He has not held PD-T for quite a while. It has fallen below $3, which was his previous buy target. He sees the current tax loss selling impacting the entire sector and will create great opportunities. However, he thinks there are better opportunities in the E&P sector. He thinks it is cheap and you would make money, but he prefers other holdings.

BUY

Averaging down is not one of his favourite things, but in this case, he’s starting to like crude and nat gas. Yes, he’d put money in. The stock is cheap, nice selloff. Stock like this will benefit from a hold. (Analysts’ price target is $5.81)

HOLD

The stock has been hit lately. Their oeprations were doing well over the past few quarters. Then, PD announced they would buy Trinidad (during a market downturn), so their stock collapsed. He's trying to understand their rationale behind that announcement. Their last quarter was weak. Hold onto itnow. The stock could snap back if Ensign tops up their bid for Trinidad. Not sure what's going to happen.

BUY

It's cheap. Buy it now, but it'll take time. No downside risk.

DON'T BUY

The company has recently gained traction as demand for their Tier I rigs has increased. He is challenged to see how utilization rates can go much higher. He would prefer to own Trican (TCW-T) instead at this point.

DON'T BUY

Is the largest driller in Canada. Did very well in Q2 in US, but less so in Canada. Debt has gone up, so they have some balance sheet concerns. Has other names in this sector that may be better with higher growth potential and less balance sheet concerns.

COMMENT

Oil services stocks have suffered, but it's had an uptrend for the past 12 months. It's likely it'll hold at current levels and could rise above $5.40. The sector should move up.

TOP PICK

He really likes the energy space and sees PD-T putting in good earnings going forward. They have 80 rigs in the US and 60 rigs in Canada. They have seen day rates go from $18,000 per day up to $25,000 per day recently. Margins continue to improve, costs are under control, and they are putting rigs back into service. E&P capex budgets are increasing in North America and with WTI being at $65-$80 he thinks companies will continue to spend. Management continues to build a strategy to lower the debt levels. Yield 0%. (Analysts’ price target is $6.04)

DON'T BUY

Troubled by this stock. Is drilling going to become increasingly more expensive? He’s highly, highly cautious. If we leave the Paris Accord, there will be a huge reduction in oil and gas exploration. If this company has to rely on continued resource exploration to be profitable, he’d be really cautious.

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Precision Drilling (PD.TO)