Schlumberger Limited. (SLB), Flotek Industries Inc (FTK): Three Oil-Field Services Stocks the Street Really Likes

Page 1 of 2

Schlumberger Limited. (NYSE:SLB)The old adage that investors should watch stocks, not the market, obviously implies that solid names will do well regardless of the prevailing macro circumstances. Nevertheless, in times like the present, with numerous major economic and political issues lurking, it’s important for investors to pay attention to portfolio balance.

From my perspective, one of the keys to achieving that objective these days involves a solid foundation of energy stocks. But what sort of energy stocks? After all, we can choose from among a wide array of producers, middleware companies, oil-field services providers, refiners, and a host of companies tangential to the industry.

Big and not so big at your service
In the services sector, perhaps the most difficult to comprehend of the sub-sectors, you likely have a good handle on the kingpin, Schlumberger Limited. (NYSE:SLB). The company, with a $100 billion market cap, operates in about 85 countries, through the efforts of more than 100,000 employees. Its services include everything from soup to nuts, or seismic to production assistance. So, if you’re looking for an ideal company to constitute a single proxy for the services contingent, Schlumberger’s a good bet.

But at the other end of the spectrum are several strong, but far smaller, services companies that you’d be wise to watch. I’ll quickly point to a threesome, all of which have market capitalizations below $5 billion and merit consensus ratings from the analysts of two or better. Recall that, with three being a hold, two a buy, and one a strong buy, a two or lower consensus represents a vote of confidence from the analysts. (As an erstwhile analyst, I won’t disregard the opinions of the Wall Streeters.)

Flotek Industries Inc (NYSE:FTK)
I’ve mentioned Flotek Industries to Fools in the past. The relatively small ($940 million capitalization and growing) company provides a range of products and assistance for oil and gas operations, from well construction to production. It’s also the only services company — and one of but a handful of companies in any sector — that’s been accorded a perfect consensus of one (strong buy) by the analysts.

Flotek Industries Inc (NYSE:FTK)’s chemicals and logistics division produces a variety of specialty chemicals used in the stimulation, cementing, and blending of oil and gas wells. Its drilling products unit manufactures and repairs downhole drilling tools. And its artificial lift division manufactures several types of pumps, separators, and valves.

The company has achieved a number of solid metrics, hardly the least of which is a return on equity that sits at a lofty 43.7%.

Superior Energy Services, Inc. (NYSE:SPN)
The largest of the three “smaller” oil-field services companies for this discussion carries an approximately $4.4 billion market cap. The Houston-based company has been accorded a rating of 1.6 by the analysts, with no single rating below a buy. (All three of the companies discussed here are headquartered in Houston. But that’s a coincidence, not a requirement.)

Superior operates through four separate segments: drilling products and services, onshore completion and workover services, production services, and subsea and technical solutions. As such, it overlaps in several areas with Forum Energy Technologies Inc (NYSE:FET), another smaller capitalization company that I recently described to Fools.

Helix Energy Solutions Group Inc. (NYSE:HLX)
At $2.70 billion in market capitalization, Helix is equidistant between Flotek Industries Inc (NYSE:FTK) and Superior from a size perspective. The company operates through two segments: contracting services and production facilities.

While it provides numerous inspection, maintenance, and repair services, along with an array of products, it’s important to note that it is closely tied to expanding deepwater operations. In that area, it offers a range of services, including the installation of subsea assets. It therefore also overlaps with Forum Energy in a rapidly growing area of oil-field services.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!