STP Research has forecasted a 72% upside for Patterson-UTI-Energy over a 12 month period. Patterson is rated a Strong Buy.
Patterson-UTI Energy Inc is a provider of contract services to the oil and natural gas industry. It operates in three segments namely contract drilling services, pressure pumping services, and oil and natural gas exploration and production.
STP Research Highlights:
What to like
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This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable. Superior risk adjusted returns This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Low volatility The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns. Superior total returns The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
High dividend returns The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields. Underpriced compared to earnings The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason. Underpriced compared to book value The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Underpriced on cashflow basis The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason. Superior return on equity The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile. Superior capital utilization The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile. Low debt The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential. Positive cash flow The company had positive total cash flow in the most recent four quarters. Superior Earnings Growth This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth This stock has shown top quartile revenue growth in the previous 5 years compared to its sector. Superior Dividend Growth This stock has shown top quartile dividend growth in the previous 5 years compared to its sector Page 2 of 9 Any information in this report is not , and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action. We recommend seeking a licensed professional for investment advice. High Gross Profit to Asset Ratio This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.
What to not like:
Negative free cash flow The company had negative total free cash flow in the most recent four quarters.
