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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The experts' reviews indicate that Precision Drilling is currently considered a highly attractive investment opportunity due to its low debt, strong free cash flow yield, and potential for significant upside. The company is focused on maximizing free cash flow and de-leveraging, with plans to reward shareholders in the near future. The backdrop of LNG Canada and good macro headwinds further support its positive outlook. Overall, Precision Drilling is viewed as a compelling investment with significant potential for growth and shareholder reward.

Consensus
Positive
Valuation
Undervalued
Similar
Baker Hughes, BHI
TOP PICK
Precision Drilling

Modest multiple. Trades today at 22-23% free cashflow yield at modest activity levels; forward free cashflow yield of 26%. Offers strong optionality for better activity levels in 2025, predicated on higher nat gas price. No interest in services right now, so that's one of the best value propositions. No dividend.

(Analysts’ price target is $127.38)
oil / gas field services
TOP PICK
Precision Drilling

For his bullish natural gas outlook. 23% free cashflow yield, slightly more bullish next year at 28%. Pledged to return 35% of that to shareholders. He targets 116% upside from here. No dividend.

(Analysts’ price target is $127.27)
oil / gas field services
DON'T BUY
Precision Drilling

Large contract drilling company in Canada & USA. Very risky name that is volatile. Directly tied to outcome of energy business. Day rates (salary expenses) can swing wildly. Very inexpensive stock, but hard to determine outcome of business (profits etc.)

oil / gas field services
TOP PICK
Precision Drilling

He prefers drilling to pumping because the former has far fewer competitors and pricing has been firm amid weak nat gas prices. The Canadian market is much stronger than the U.S. It boasts 31% free cash flow yield in 2025, and they will return 30-40% of that. Will hit their debt targets. he owns nearly 10% of the company. The outlook for LNG is positive. He sees 137% upside.

(Analysts’ price target is $124.11)
oil / gas field services
TOP PICK
Precision Drilling

Ridiculously cheap. Investors don't realize how much debt they have paid down. Much upside ahead.  26% free cash flow yield then 30% this and next year. They will return 30-40% of that cash flow to investors, but will tell them it should be 50%. It trades at a discount to US peers. has 100% upside.

(Analysts’ price target is $123.39)
oil / gas field services
TOP PICK
Precision Drilling

At an extremely attractive level. Focused on maximizing free cashflow and de-leveraging. Anticipates it meeting an inflection point of moving from using money to de-lever to using it to reward shareholders, by Q2 of next year.

A non-depleting business, low-maintenance assets. Backdrop of LNG Canada, replenishing inventory, good macro headwinds. His numbers show 34% free cashflow yield next year, 36% the year after. His target is $177. No dividend.

(Analysts’ price target is $132.72)
oil / gas field services
DON'T BUY
Precision Drilling

Energy is very cyclical. This will lose money when the economy is on the downturn. That happened a few years ago. Unless you are optimistic about oil prices, don't build a position.

oil / gas field services
COMMENT
Precision Drilling

In drilling services like SLB and Haliburton - a cyclical business. Buy only when out of favour.

oil / gas field services
HOLD
Precision Drilling
Short? Reticent to short. Past year has seen demand for drilling and day rates go up, and this should persist for a while. Good performer. Content to hold.
oil / gas field services
BUY
Precision Drilling
Service company in energy in Canada. Big player in US and Canada. Looks very attractive as a play on energy pickup. In the drilling business for precious metals, and increasingly base metals like copper.
oil / gas field services
PAST TOP PICK
Precision Drilling
(A Top Pick Aug 10/20, Down 0.19%) Resurgence in energy industry after pandemic has created bull energy market. Will continue to hold shares, as believes company will benefit from increase activity in energy market. Strong company that is well managed. Good balance sheet.
oil / gas field services
COMMENT
Precision Drilling
Would purchase TCW than PD. Owns neither. The collapse on oil price will impair spending further than maintenance capital. There is always a bad actor that ruins the pricing power. Would prefer the producers.
oil / gas field services
PAST TOP PICK
Precision Drilling
(A Top Pick Oct 16/20, Up 180%) Historically, service stocks were the high beta stocks but in this cycle, production needs to be kept flat. We will see some service cost inflation next year. We might not see growth in cap-ex though.
oil / gas field services
PARTIAL BUY
Precision Drilling
We are on a different cycle than in the past. The business model has shifted which is now positive for oil macro. Oil production growth is no longer elastic to rising oil prices. They are now taking free cashflow and companies are now buying back stocks. There is an opportunity for a rerate. Owned it post-consolidation. Fair value is in the $40s. Does not think the oil company will run out and drill again.
oil / gas field services
PAST TOP PICK
Precision Drilling
(A Top Pick Feb 12/20, Down 9%) He used to own 5% of the company and made a 40% profit in a few months--but he sold it way too early. Give this lesson, now he'd rather sit on oil names and ride it out, or else he'll miss the upside. Companies like this won't spend as much capex even with the oil price rise. You can do better elsewhere.
oil / gas field services
Showing 1 to 15 of 715 entries

Precision Drilling(PD-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for Precision Drilling is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Precision Drilling(PD-T) Frequently Asked Questions

What is Precision Drilling stock symbol?

Precision Drilling is a Canadian stock, trading under the symbol PD-T on the Toronto Stock Exchange (PD-CT). It is usually referred to as TSX:PD or PD-T

Is Precision Drilling a buy or a sell?

In the last year, 1 stock analyst published opinions about PD-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Precision Drilling.

Is Precision Drilling a good investment or a top pick?

Precision Drilling was recommended as a Top Pick by on . Read the latest stock experts ratings for Precision Drilling.

Why is Precision Drilling stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Precision Drilling worth watching?

1 stock analyst on Stockchase covered Precision Drilling In the last year. It is a trending stock that is worth watching.

What is Precision Drilling stock price?

On 2024-07-12, Precision Drilling (PD-T) stock closed at a price of $98.63.