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Patterson-UTI (PTEN) Outpaces Stock Market Gains: What You Should Know
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Patterson-UTI (PTEN - Free Report) closed the most recent trading day at $11.70, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.
Prior to today's trading, shares of the provider of onshore contract drilling services had lost 22.7% over the past month. This has lagged the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.
Patterson-UTI will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. On that day, Patterson-UTI is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 376.92%. Our most recent consensus estimate is calling for quarterly revenue of $756.03 million, up 48.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $3.24 billion. These totals would mark changes of +181.54% and +22.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Patterson-UTI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Patterson-UTI is currently a Zacks Rank #4 (Sell).
In terms of valuation, Patterson-UTI is currently trading at a Forward P/E ratio of 6.28. Its industry sports an average Forward P/E of 8.24, so we one might conclude that Patterson-UTI is trading at a discount comparatively.
Investors should also note that PTEN has a PEG ratio of 0.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Drilling was holding an average PEG ratio of 0.11 at yesterday's closing price.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PTEN in the coming trading sessions, be sure to utilize Zacks.com.
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Patterson-UTI (PTEN) Outpaces Stock Market Gains: What You Should Know
Patterson-UTI (PTEN - Free Report) closed the most recent trading day at $11.70, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.
Prior to today's trading, shares of the provider of onshore contract drilling services had lost 22.7% over the past month. This has lagged the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.
Patterson-UTI will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. On that day, Patterson-UTI is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 376.92%. Our most recent consensus estimate is calling for quarterly revenue of $756.03 million, up 48.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $3.24 billion. These totals would mark changes of +181.54% and +22.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Patterson-UTI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Patterson-UTI is currently a Zacks Rank #4 (Sell).
In terms of valuation, Patterson-UTI is currently trading at a Forward P/E ratio of 6.28. Its industry sports an average Forward P/E of 8.24, so we one might conclude that Patterson-UTI is trading at a discount comparatively.
Investors should also note that PTEN has a PEG ratio of 0.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Drilling was holding an average PEG ratio of 0.11 at yesterday's closing price.
The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PTEN in the coming trading sessions, be sure to utilize Zacks.com.