In this article, we will take a look at some of the best companies within the oil & gas equipment & services segment that are highly favored by hedge funds.
On April 7, Reuters presented a detailed analysis of the underlying dynamics within the energy markets based on the U.S. Energy Information Administration’s short-term energy outlook. The analysis discussed how fuel prices could continue increasing over several months, despite the reopening of the Strait of Hormuz. This would go against what President Donald Trump predicted, namely that consumers would be relieved once the war with Iran ends.
The important thing to note is that EIA has forecasted an average price for the global benchmark Brent crude oil at a level of $96 per barrel, which is up by 22% since the previous estimate of $78.84. The retail prices for gasoline and diesel in the U.S. are expected to peak in April this year at $4.30 and $5.80 per gallon, respectively. The estimates for global oil demand growth have been revised downward from 1.2 million barrels per day to 600,000 barrels per day due to fuel shortages in some regions. However, it is expected to take many months until all oil deliveries resume in the Strait of Hormuz following the end of the conflict.
In this kind of situation, it becomes important to know which oil and gas equipment companies will gain from high prices and long-term investments in infrastructure. With that background, let’s explore our list of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
Photo by Robin Sommer on Unsplash
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed oil and gas equipment & services companies with market capitalizations above $2 billion. Next, we identified the number of hedge funds holding positions in these stocks as of the end of the fourth quarter of 2025. Finally, we selected 10 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. WaterBridge Infrastructure LLC (NYSE:WBI)
WaterBridge Infrastructure LLC (NYSE:WBI) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
On March 18, Goldman Sachs reaffirmed its Neutral rating on WaterBridge Infrastructure LLC (NYSE:WBI). The firm also increased the price target on the stock from $23 to $26. The price target revision is based on the firm’s adjustments to its model, which were made after the release of the fourth-quarter results.
On March 16, WaterBridge Infrastructure LLC (NYSE:WBI) confirmed plans to commence construction of the Speedway Pipeline project. Moreover, the open season for the second phase of the project will begin in February 2026.
Phase II will increase the existing throughput to 500,000 barrels per day for the Speedway Pipeline serving customers in Eddy and Lea counties, New Mexico. It was declared that the company will pay the first-ever cash dividend in its history, with US$0.05 per share for the first quarter of 2026.
For the full year, the estimated adjusted EBITDA for the company is expected to be between US$420 million and US$460 million due to growth enabled by key capital projects with minimum volume commitment. The company experienced high performance with an uptime of 99.7%, measurement variance below 1%, and technology-led activities helping to achieve good results. In addition, the company set a record in the fourth quarter, processing 2.9 million barrels of produced water per day.
WaterBridge Infrastructure LLC (NYSE:WBI) offers water management services through an integrated water and pipeline system. It provides brackish water, recycled water, and produced water solutions. It also delivers pipeline services for managing and collecting produced water, as well as gas delivery services.
9. Archrock Inc. (NYSE:AROC)
Archrock Inc. (NYSE:AROC) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
As of the April 10 close, Archrock Inc. (NYSE:AROC) had a strongly bullish consensus sentiment. The stock received coverage from 7 analysts, all of whom assigned Buy ratings. It has a projected median 1-year price target of $40, implying upside potential of more than 11%.
On April 2, Mizuho reiterated its Outperform rating for Archrock Inc. (NYSE:AROC). The firm also increased the target price from $32 to $38. It expects strength in the natural gas compression sector due to good fundamentals, although price increases from Archrock are expected to be modest.
Back on March 16, RBC Capital also increased its target price for Archrock Inc. (NYSE:AROC) from $32 to $40, resulting in a double-digit upside potential of more than 11% at the current level. The firm reiterated its Outperform rating.
This upward revision in price target follows highly favorable demand trends for natural gas. According to the firm, the company directly stands to benefit from this as the underlying capacity utilization, operational pricing, and overall demand for both new and current horsepower remain consistently solid.
Archrock Inc. (NYSE:AROC) works as an energy infrastructure organization providing natural gas compression services. It does that by developing, installing, and maintaining its fleet of compression gear. It also offers maintenance and repair services in addition to selling over-the-counter parts and accessories to clients who own such equipment.
8. NOV Inc. (NYSE:NOV)
NOV Inc. (NYSE:NOV) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
On April 7, Susquehanna increased the price target on NOV Inc. (NYSE:NOV) from $21 to $22 while maintaining a Positive rating on the stock. The firm adjusted targets in oilfield services as part of a first-quarter preview.
The firm noted that the current geopolitical tensions between Iran and its adversaries have acted as a major positive catalyst for commodities and energy stock prices. In this regard, Susquehanna lowered its estimates on oilfield services stocks that operate in the Middle East owing to rising costs, disruption, and delays associated with several projects. Nevertheless, Susquehanna notes that the impacts in the medium- to long-term are expected to be positive because of tightening supply conditions.
Back on March 4, Ati Modak from Goldman Sachs increased the price target on NOV Inc. (NYSE:NOV) from $17 to $20 while maintaining a Sell rating on the stock. The analyst highlighted that even though geopolitical risks might create some problems in the short run, there are already signs of some disturbances that might provide some opportunities compared to the fundamentals.
According to Modak, it seems that these geopolitical problems will not have any influence on the decisions of the client in the future, as much of the growth is neutralized by the negative trends and production capacity.
NOV Inc. (NYSE:NOV) operates in the renewable energy industry and is engaged in developing components and systems for oil and gas drilling. It offers devices used in drilling, including rig components, coiled tubing, cavity pumps, and more. Additionally, it also provides services like waste management, data, and digital solutions, to name a few.
7. Tidewater Inc. (NYSE:TDW)
Tidewater Inc. (NYSE:TDW) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
As of the April 10 close, Tidewater Inc. (NYSE:TDW) had a Neutral consensus sentiment. The stock received Hold ratings from 3 analysts, and has a projected median 1-year price target of $87.
On April 1, Barclays assigned an Equal Weight rating to Tidewater Inc. (NYSE:TDW) while setting its price target at $80. This rating is based on the continued momentum in the company’s total free cash flows and its overall financial strength.
The company maintains a strong operational foundation within production support. It also carries a notable upside potential as offshore drilling activity steadily improves. At the prevailing level, Barclays views the stock to be fairly valued.
Back on March 4, Evercore ISI increased the price target on Tidewater Inc. (NYSE:TDW) from $65 to $94, resulting in more than 9% upside potential at the prevailing level. The firm maintained an In Line rating on the stock. It reflected on Tidewater’s favorable position at the conclusion of 2025 and expects it to be an excellent foundation for the coming year.
Tidewater Inc. (NYSE:TDW) delivers support vessels and marine support services to the offshore energy industry. It provides these services globally through its fleet of vessels. It provides several specialized services, including pipe and cable laying and geotechnical survey support for wind farm construction. Its services portfolio also includes offshore construction, seismic, and subsea support.
6. Weatherford International plc (NASDAQ:WFRD)
Weatherford International plc (NASDAQ:WFRD) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.
On April 9, Barclays reiterated an Overweight rating on Weatherford International plc (NASDAQ:WFRD). The firm, however, lowered the target price on the stock from $114 to $111. The downward revision to the price target is based on the firm’s broader adjustments across the energy services segment as part of the first-quarter preview.
Barclays reflected on the ongoing disruptions due to the Middle East conflicts and the resulting spike in oil prices. These factors are anticipated to result in an earnings revision cycle.
On April 3, Weatherford International plc (NASDAQ:WFRD) revealed a proposal to alter its corporate structure through the redomestication of its holding company from Ireland to the United States, with Texas as its future home. It is estimated that the redomestication will be concluded in the third quarter of the year, pending necessary approvals.
The head office of Weatherford on a global scale has been located in Houston for more than two decades, and the company has maintained an immense presence in Texas and even throughout the U.S. energy corridor through its operations. Weatherford indicated that the redomestication would improve shareholder value over time through streamlining of the business and operational structures of the corporation, increasing the number of shareholders within the United States, and providing opportunities to access finance, adapt to changes in tax legislation, and respond to tax matters around the globe.
Weatherford International plc (NASDAQ:WFRD) sells products and services for drilling, assessment, and intervention of oil, geothermal, and natural gas wells. It offers equipment for pressure drilling, electrical, and hydraulic power transmission, to name a few. Its services portfolio includes re-entry, fishing, and well abandonment solutions, among others.
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