Precision Drilling (PD.TO)

Precision Drilling (PD-T) is seen as a well-run company with significant upside potential due to the increasing activity in the oil sector, which is likely to drive up pricing by 5-10% leading into 2027. Experts anticipate a favorable market environment, particularly for pure play oil producers, suggesting that they will outperform the broader market. Additionally, the company has demonstrated strong financial performance, achieving its debt targets and planning to return 50% of capital to shareholders, which positions it attractively with a projected 20% free cash flow yield next year. The positive sentiment is further bolstered by the company's leverage to U.S. natural gas growth, indicating a meaningful opportunity as demand increases. However, some experts believe now may not be the ideal time to invest despite the positive outlook and financials.