Last Updated: 10 Nov 2024
Executive Summary
Precision Drilling Corporation (PDS) is a leading oilfield services company that provides drilling services and products to the oil and gas industry in North America and the Middle East. The company has a strong financial position, with a market capitalization of $902.97 million and an EBITDA of $540.16 million. PDS has a trailing PE ratio of 5.43 and a forward PE ratio of 9.78. The latest stock price is $63.91, which is above its 50-day moving average of $62.94 and below its 200-day moving average of $66.95.
Company Overview
Precision Drilling Corporation was founded in 1951 and is headquartered in Calgary, Canada. The company has a fleet of over 100 drilling rigs and provides services to a variety of customers, including oil and gas producers, drilling contractors, and service companies. PDS has a strong track record of profitability and has generated positive free cash flow in each of the past five years.
Fundamental Analysis
PDS has a strong financial position, with a debt-to-equity ratio of 0.43 and a current ratio of 1.23. The company's revenue and earnings have grown steadily in recent years, and PDS is expected to continue to benefit from the rising demand for oil and gas drilling services. PDS has a strong management team with a proven track record of success. The company's CEO, Kevin Neveu, has been with PDS for over 20 years and has led the company through a period of significant growth.
Technical Analysis
The technical analysis of PDS indicates that the stock is in a bullish trend. The stock price is above its 50-day and 200-day moving averages, and the relative strength index (RSI) is above 50. The stock is also forming a bullish flag pattern, which is a technical indicator that suggests that the stock is likely to continue to rise.
Short Term Outlook
The short-term outlook for PDS is positive. The stock is in a bullish trend and is expected to continue to rise in the near term. The company's strong financial position and positive earnings outlook are likely to support the stock price.
Long Term Outlook
The long-term outlook for PDS is also positive. The demand for oil and gas drilling services is expected to continue to grow in the coming years, and PDS is well-positioned to benefit from this growth. The company's strong management team and financial position should also help to support the stock price over the long term.
Analyst Recommendations
The majority of analysts have a positive outlook on PDS. The average analyst rating is "Buy", and the average analyst target price is $90.95. The highest analyst target price is $100.00, and the lowest analyst target price is $80.00.
