With oil and gas stocks showing strength in a bad market, SLB and Halliburton peer Tidewater stock joins Baker Hughes on IBD Leaderboard. The Energy Select Sector SPDR ETF has also fueled a spot on this list.
While ExxonMobil and Chevron lead the top holdings in the XLE ETF, SLB stock also earns that distinction. Note that investors can drill deeper into potential opportunities in the oil and gas sector by exploring the individual stocks inside a particular ETF with a specific focus.
For example, SLB, Halliburton and Baker Hughes are among the top holdings in the VanEck Oil Services ETF. The Oil & Gas-Field Services group, whose leaders include Tidewater and SLB, ranks No. 36 out of the 197 industries IBD tracks.
With the highest-possible 99 Composite Rating, BKR stock leads the No. 37-ranked Oil & Gas-Machinery/Equipment group. Home to CVX and XOM stock, the Oil & Gas-Integrated group ranks 95th.
Further showing demand for the oil and gas sector, Tidewater stock made this month's list of new buys by the best mutual funds. Baker Hughes also drilled its way onto this stock screen.
Tidewater Stock: Estimates Of 1,434% EPS Growth
Based in Houston, Tidewater owns and operates one of the largest fleets of OSVs (offshore support vessels) in the industry. Global in scale, the company operates in the Americas, Asia-Pacific, Middle East, Europe and Mediterranean, and West Africa.
Tidewater has been swinging to profits in recent quarters. Earlier this month, the oil and gas firm posted earnings of 46 cents vs. a loss of 10 cents in the prior-year quarter. Although based on comparisons with 2022, which showed a loss, analysts forecast a whopping 1,434% increase in earnings for 2023. Wall Street expects triple-digit EPS growth in 2024.
The strong outlook continues to generate demand for Tidewater stock. In addition to making the list of new buys by top funds, TDW stock sports a B+ Accumulation/Distribution Rating and a strong 1.9 up/down volume ratio.
Last month, Tidewater completed its acquisition of 37 platform supply vessels and related assets from Solstad Offshore ASA for $580 million. The deal results in the largest hybrid OSV fleet in the world, with 14 battery hybrid and two LNG capable vessels.
| Company | Symbol | Comp Rating | EPS est cur yr | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Schlumberger | SLB | 99 | 37% | 89 | 91 | A | B- |
| Tidewater | TDW | 99 | 1,434 | 81 | 98 | C | B+ |
| Liberty Energy | LBRT | 98 | 40 | 79 | 83 | A | A- |
| Expro Group | XPRO | 98 | 481 | 56 | 94 | C | B+ |
| Halliburton | HAL | 97 | 41 | 86 | 88 | A | C+ |
TDW Stock Rides Deep Support Into Buy Zone
Tidewater stock continues to ride a powerful move off a low hit at the end of 2021. Proving its mettle, TDW held support at its 10-week moving average after dipping below the all-time high it reached earlier this month.
The stock blasted past a 51.88 buy point on June 30. Volume roared 143% above average. Tidewater stock continued to hold and add to those gains. It now trades within a 59-64.90 buy zone.
In addition to the current pressure in the market indexes, the fact that Tidewater's latest breakout came from a late-stage base calls for caution.
Yet in the current market environment, Tidewater and oil and gas sector peers like SLB, Halliburton, Baker Hughes and Xpro are showing clear relative strength.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
