Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Oil & Gas - Related Services and Equipment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Oil & Gas - Related Services and Equipment Stock News

Before choosing which top Oil & Gas - Related Services and Equipment stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The fundamental outlook for the oil & gas related services & equipment sub-industry is neutral for the next 12 months. Oil prices rebounded from lows during the pandemic to all-time highs in spring of 2022. Global oil demand is expected to exceed pre-pandemic levels, but inadequate supply levels add additional stress to an already tight market. Oil producers are increasing their capital spending for 2022, paving the way for more production while driving up demand for oil services. Despite this, the industry faces challenges heading into late 2022. Labor, equipment maintenance and supplies are all getting more costly. Oil services companies are also experiencing a shortage of sand used for fracking, rigs and fracking crews.

Why Focus on Undervalued Oil & Gas - Related Services and Equipment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Oil & Gas - Related Services and Equipment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Oil & Gas - Related Services and Equipment industry for Wednesday, November 08, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Oil & Gas - Related Services and Equipment industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Forum Energy Technologies Inc’s Value Grade

Value Grade:

Forum Energy Technologies, Inc. is a global company serving the oil, natural gas, industrial, and renewable energy industries. The Company?s segments include Drilling & Downhole, Completions and Production. Its Drilling & Downhole segment designs, manufactures and supplies products and provides related services to the drilling, well construction, artificial lift and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. Its Completions segment designs, manufactures and supplies products and provides related services to the coiled tubing, well stimulation and intervention markets. Its Production segment designs, manufactures and supplies products and provides related equipment and services for the production and infrastructure markets. It provides a range of industrial valves. It offers its products to renewable energy and new energy companies for applications, such as offshore wind, geothermal power, and biogas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Forum Energy Technologies Inc has a Value Score of 64, which is considered to be undervalued.

When you look at Forum Energy Technologies Inc’s price-to-sales ratio at 0.31 compared to the industry median at 0.73, this company has a lower price relative to revenue compared to its peers. This could make Forum Energy Technologies Inc’s stock more attractive for value investors.

Now, let’s assess Forum Energy Technologies Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.1, when compared to the industry median of 7.4, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Forum Energy Technologies Inc’s shareholder yield is lower than its industry median ratio of (0.07%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Forum Energy Technologies Inc’s price-to-book ratio is lower than its industry median ratio of 1.27. This could make Forum Energy Technologies Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Forum Energy Technologies Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Forum Energy Technologies Inc’s price-to-free-cash-flow ratio is higher than its industry median ratio of 17.01. This could make Forum Energy Technologies Inc less attractive because the higher P/FCF ratio indicates that Forum Energy Technologies Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

NCS Multistage Holdings Inc’s Value Grade

Value Grade:

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well construction, well completions and field development strategies. The Company offers products and services primarily to exploration and production companies for use in onshore and offshore wells. The Company?s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China, the Middle East and the North Sea. The Company owns a 50% interest in Repeat Precision, LLC, which sells composite frac plugs, perforating guns and related products directly to customers. It also provides tracer diagnostics services for well completion and reservoir characterization that utilize downhole chemical and radioactive tracers. The Company sells products for well construction, including its casing buoyancy systems, liner hanger systems and toe initiation sleeves.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

NCS Multistage Holdings Inc has a Value Score of 64, which is considered to be undervalued.

NCS Multistage Holdings Inc’s price-to-book ratio is higher than its peers. This could make NCS Multistage Holdings Inc less attractive for value investors when compared to the industry median at 1.27.

You can read more about NCS Multistage Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Oil States International Inc’s Value Grade

Value Grade:

Oil States International, Inc. is a provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment, as well as products consumed in the drilling, well construction and production of oil and natural gas. It operates through three segments. Offshore/Manufactured Products segment provides products and services to customers in the various offshore crude oil and natural gas producing regions of the world. Well Site Services segment includes a range of equipment and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. Downhole Technologies segment is comprised of the GEODynamics business and provides oil and gas perforation systems, downhole tools and services in support of completion, intervention, wireline and well abandonment operations.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Oil States International Inc has a Value Score of 65, which is considered to be undervalued.

Oil States International Inc’s price-earnings ratio is 44.9 compared to the industry median at 15.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Oil States International Inc less attractive for value investors.

Oil States International Inc’s price-to-book ratio is higher than its peers. This could make Oil States International Inc less attractive for value investors when compared to the industry median at 1.27.

You can read more about Oil States International Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Perma-Pipe International Holdings Inc’s Value Grade

Value Grade:

Perma-Pipe International Holdings, Inc. is engaged in the manufacture and sale of piping systems. The Company engineers, designs, manufactures, and sells specialty piping systems and leak detection systems. Its Specialty piping systems include insulated and jacketed district heating, and cooling piping systems; primary and secondary containment piping systems for transporting chemicals, hazardous fluids and petroleum products; the coating and/or insulation of oil and gas gathering and transmission pipelines; and liquid and powder-based anti-corrosion coatings. The Company's leak detection systems are sold with its piping systems or on a stand-alone basis to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services, or damage equipment or property. The Company operates through one segment: Piping Systems.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Perma-Pipe International Holdings Inc has a Value Score of 66, which is considered to be undervalued.

Perma-Pipe International Holdings Inc’s price-earnings ratio is 10.9 compared to the industry median at 15.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Perma-Pipe International Holdings Inc more attractive for value investors.

Perma-Pipe International Holdings Inc’s price-to-book ratio is higher than its peers. This could make Perma-Pipe International Holdings Inc less attractive for value investors when compared to the industry median at 1.27.

You can read more about Perma-Pipe International Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Select Water Solutions Inc’s Value Grade

Value Grade:

Select Water Solutions, Inc. is a provider of sustainable water and chemical solutions to the energy industry. The Company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment consists of the Company’s services businesses, including water sourcing, water transfer, flowback and well testing, fluid hauling, water monitoring, water containment and water network automation, primarily serving exploration and production (E&P;) companies. The Water Infrastructure segment consists of its fixed infrastructure assets, including operations associated with its water distribution pipeline infrastructure, its water recycling solutions, and its produced water gathering systems and saltwater disposal wells, as well as solids disposal facilities, primarily serving E&P; companies. The Chemical Technologies segment provides technical solutions, products and expertise related to chemical applications in the oil and gas industry.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Select Water Solutions Inc has a Value Score of 72, which is considered to be undervalued.

Select Water Solutions Inc’s price-earnings ratio is 15.7 compared to the industry median at 15.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Select Water Solutions Inc less attractive for value investors.

Select Water Solutions Inc’s price-to-book ratio is higher than its peers. This could make Select Water Solutions Inc less attractive for value investors when compared to the industry median at 1.27.

You can read more about Select Water Solutions Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Oil & Gas - Related Services and Equipment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Oil & Gas - Related Services and Equipment stocks as well as other industrys.

Choosing Which of the 5 Best Oil & Gas - Related Services and Equipment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Forum Energy Technologies Inc stock has a Value Grade of B.
• NCS Multistage Holdings Inc stock has a Value Grade of B.
• Oil States International Inc stock has a Value Grade of B.
• Perma-Pipe International Holdings Inc stock has a Value Grade of B.
• Select Water Solutions Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 undervalued stocks in the Oil & Gas - Related Services and Equipment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Oil & Gas - Related Services and Equipment Stocks

Want to learn more about Oil & Gas - Related Services and Equipment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Oil & Gas - Related Services and Equipment Stocks for Wednesday, November 08
• 6 Undervalued Oil & Gas - Related Services and Equipment Stocks for Tuesday, November 07
• Why Cactus Inc’s (WHD) Stock Is Down 4.80%
• Why Helix Energy Solutions Group Inc’s (HLX) Stock Is Down 5.02%

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