10 Best Oil Drilling Stocks to Buy According to Hedge Funds

2. Patterson-UTI Energy, Inc (NASDAQ:PTEN)

Number of Hedge Fund Holders: 45

Patterson-UTI Energy is one of the best oil drilling stocks according to hedge funds, and here’s the latest from Wall Street: on July 15, Piper Sandler initiated coverage with a Neutral rating and set a $7.00 price target, implying roughly 18% upside from current levels.

Analyst Derek Podhaizer noted that the U.S. land-drilling market remains under pressure due to lower rig counts (down from roughly 522 to 500) and persistent oil prices below $70 a barrel. Nonetheless, Podhaizer praised Patterson-UTI’s operational scale and stable land services footprint as key strengths in a challenging environment.

That cautious tone, Neutral, not Buy, signals balance: Piper isn’t expecting a surge, but they see value grounded in PTEN’s steady core business. Hedge funds often circle stocks like this when they feature stability, size, and earnings visibility, even in tough cycles.

Headquartered in Houston, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is one of North America’s largest land-drilling contractors. The company operates through contract drilling, pressure pumping, and drilling products segments, with the bulk of revenue generated from onshore oilfield services.