This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Precision Drilling (PDS) Stock Is Jumping This Morning

NEW YORK (TheStreet) -- Shares of Precision Drilling Corp. (PDS - Get Report) are higher by 4.40% to $13.99 in pre-market trading on Wednesday after the company announced a strategic technology service agreement and marketing alliance with Schlumberger (SLB - Get Report).

Precision Drilling, a contract drilling company, said it entered into the agreement with the leading provider of oilfield services to further the company's High Performance, High Value strategy, while continuing to expand its integrated directional drilling services.

Additionally, Precision Drilling was upgraded to "buy" from "hold" at Deutsche Bank (DB - Get Report) today, as the firm feels the industry has "considerable upside potential."


Separately, TheStreet Ratings team rates PRECISION DRILLING CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate PRECISION DRILLING CORP (PDS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PDS's revenue growth has slightly outpaced the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 55.74% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has significantly increased by 170.26% to $170.13 million when compared to the same quarter last year. In addition, PRECISION DRILLING CORP has also vastly surpassed the industry average cash flow growth rate of 49.24%.
  • PRECISION DRILLING CORP has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, PRECISION DRILLING CORP increased its bottom line by earning $0.67 versus $0.17 in the prior year.
  • 41.22% is the gross profit margin for PRECISION DRILLING CORP which we consider to be strong. Regardless of PDS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PDS's net profit margin of 15.10% compares favorably to the industry average.
  • You can view the full analysis from the report here: PDS Ratings Report
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DB $28.38 -3.00%
PDS $4.42 -4.30%
SLB $75.36 -1.20%
AAPL $109.52 -0.77%
FB $88.16 0.01%

Markets

Chart of I:DJI
DOW 16,179.21 -195.55 -1.19%
S&P 500 1,920.01 -31.12 -1.60%
NASDAQ 4,680.08 -53.4170 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs