NEW YORK (TheStreet) -- As Kenny Rogers sings in "The Gambler," "You got to know when to hold 'em, know when to fold 'em / Know when to walk away, know when to run." This is not only great advice for wildcatters but should also be heeded by traders and investors of oil services stocks.
Today's table shows the 25 stocks that are the components of the
Market Vectors Oil Services
ETF ($41.35). The daily chart shows a wide trading range between the June 26, 2012 low at $32.54 and the highs set on Feb. 24, 2012 at $45.14 and Feb. 14, 2013 at $45.12. I show weekly and monthly pivots at $42.18 and $42.85, which failed to hold this week.
Chart Courtesy of Thomson / Reuters
The oil services stocks slipped on Wednesday after the Energy Information Administration (EIA) reported that crude oil inventories rose to the highest level since 1990. Crude inventories rose 2.71 million barrels in the week ending March 29 to more that 388 million barrels.
The price of a barrel of
Nymex Crude Oil
fell by $2.40 to $94.46 closing just below the 50-day SMA at $94.64. My weekly value level is $31.20 with monthly and annual risky levels at $98.93 and $115.23.
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Today the oils-energy sector is 5.4% overvalued according to www.ValuEngine.com with the oil & gas field services industry 3.6% overvalued, the oil & gas drilling industry 1.7% overvalued and the oil field machine & equipment industry 3.9% overvalued.
OV / UN Valued
: 12 oil services stocks are undervalued with
the most undervalued by 13.9%. The most overvalued stock is
Oil States International
is the only stock in the table with a "4-Engine" buy rating after being upgraded from hold this morning.
was upgraded to hold from sell.
is only "2-Engine" sell rated stock in the table. All other stocks in the table have "3-Engine" or hold ratings.
has been downgraded to hold from buy this morning.
Last 12-Month Return (%)
: 12 oil services stocks declined over the last 12 months with
the biggest loser down 20.2%. The biggest winner of the 12 risers is
with a gain of 29.6%.
Forecast 1-Year Return
: The biggest potential loser is
with a projected loss of 7.6% over the next 12 months. The projected winners are expected to be up only slightly between 0.5% and 4.7%.
12 Month Trailing P/E Ratios
: P/E ratios range from 10.1 for
to 28.7 for
200-Day Simple Moving Averages
: We began the week with only two oil services stocks below their 200-day SMAs. The reversion to the mean spread to four additional names this week. Those below are;
. This means that the other 19 stocks are still at risk of reversion to the mean.
Here's how to use the Value Levels and Risky Levels for stocks in today's table:
: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
: A level between a value level and risky level that should be a magnet during the time frame noted.
: is the price at which to enter a GTC Limit Order to sell on strength.
The author has no positions in the stocks mentioned today.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined
in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs
and can be reached at