Drilling for oil-field services stocks

Thursday, December 15, 2016

What are we looking for?
North American oil-field services stocks poised to benefit from stabilizing world oil prices. On Nov. 30, OPEC members reached a new agreement to reduce oil production levels by 1.2 million barrels a day. Since then, the price of crude oil has rallied about 1 per cent, leading to sharp advances in the stock prices of oil producers. However, the advance has been even more dramatic in the prices of oil-field services stocks, an industry that has suffered the past two years under the burden of low oil prices.
The Screen
We will be using Recognia Strategy Builder to identify North American oil-field services stocks with low debt and reasonable valuations despite rallying strongly in the past month.
We begin by setting a minimum market capitalization threshold of $1-billion. We wish to focus on larger capitalization companies because of the greater stability and safety that they offer. We will consider both U.S. and Canadian listed stocks.
 
Read the full article here.