Oilfield Services Stocks Experience a Turnaround
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Benzinga
- Industry Performance Reversal: In 2026, oilfield services stocks have surged, with the VanEck Oil Services ETF (NYSE: OIH) rallying nearly 30% year-to-date through February 4, marking it as the best-performing industry group this year and indicating a significant shift in capital flows.
- Structural Re-rating: Jeff Krimmel of Krimmel Strategy Group emphasizes that this rally is not merely momentum-driven but reflects a structural re-rating of oil-related equities, which could reshape capital flows and investment priorities over the next decade.
- Relative Performance Boost: Year-to-date, oilfield services stocks have outperformed software by nearly 60 percentage points, pushing their relative performance ratio to its highest level since November 2023, showcasing investors' preference for value-linked energy plays.
- Sustainable Growth Potential: As market confidence in oilfield services strengthens, attention shifts to whether these companies can convert operational momentum into sustainable earnings growth, indicating that the oilfield services sector is regaining investor focus.
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Analyst Views on BKR
Wall Street analysts forecast BKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKR is 55.17 USD with a low forecast of 52.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 57.360
Low
52.00
Averages
55.17
High
61.00
Current: 57.360
Low
52.00
Averages
55.17
High
61.00
About BKR
Baker Hughes Company is an energy technology company with a portfolio of technologies and services that span the energy and industrial value chain. The Company operates in two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). OFSE segment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction; Completions, Intervention, and Measurements; Production Solutions, and Subsea and Surface Pressure Systems. IET segment provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Relative Performance Boost: Year-to-date, oilfield services stocks have outperformed software by nearly 60 percentage points, pushing their relative performance ratio to its highest level since November 2023, showcasing investors' preference for value-linked energy plays.
- Sustainable Growth Potential: As market confidence in oilfield services strengthens, attention shifts to whether these companies can convert operational momentum into sustainable earnings growth, indicating that the oilfield services sector is regaining investor focus.
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- Enhanced Investor Confidence: The ETF's upward movement may bolster investor confidence, prompting more capital to flow into the stock market, which could positively impact the performance of related assets.
- Market Trend Monitoring: The performance of SPY may signal broader market trends, and investors should monitor upcoming economic data and policy changes in the coming weeks to assess the potential for sustained market strength.
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- Stable Dividend Growth: Since initiating its dividend in 2018, FANG has grown its payout by 7.2% annually, currently offering a 2.42% annual yield, alongside an $8 billion share buyback authorization, reflecting the company's ongoing commitment to shareholders.
- Cost Structure Advantage: With a breakeven price of $30 per barrel and a dividend maintenance price of $37, significantly below the current $65 oil price, FANG demonstrates its ability to remain profitable even in low oil price environments, enhancing its competitive edge.
- Strong Technicals: FANG trades above both the 50-day and 200-day moving averages, indicating robust upward momentum, with the next key resistance around $170-$172; a breakout here would further solidify its market position.
See More
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- Agreement Reached: Baker Hughes has entered into an agreement to become the preferred provider for Marathon Petroleum at its North American refineries, further deepening a three-decade collaboration that underscores their commitment and expertise in downstream chemicals.
- Technology Portfolio Provided: Under the agreement, Baker Hughes will supply its portfolio of downstream chemical technologies, including heavy oil demulsifiers and corrosion inhibitors, to 12 oil refineries and two renewable fuel facilities, aiming to enhance operational reliability and environmental compliance while minimizing non-productive time.
- Market Leadership Reinforced: Baker Hughes solidifies its leadership position in downstream chemicals, with Executive VP Amerino Gatti highlighting that the long-standing partnership is a testament to the innovation and dedication of their team, thereby enhancing their competitive edge in the market.
- Support for Environmental Compliance: By providing digital monitoring tools and renewable additives, Baker Hughes not only improves refinery operational efficiency but also assists clients in meeting increasingly stringent environmental regulations, showcasing its strategic importance in sustainable development.
See More
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See More
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- Structural Re-rating: Jeff Krimmel of Krimmel Strategy Group emphasizes that this rally is not merely momentum-driven but reflects a structural re-rating of oil-related equities, which could reshape capital flows and investment priorities over the next decade.
- Relative Performance Boost: Year-to-date, oilfield services stocks have outperformed software by nearly 60 percentage points, pushing their relative performance ratio to its highest level since November 2023, showcasing investors' preference for value-linked energy plays.
- Sustainable Growth Potential: As market confidence in oilfield services strengthens, attention shifts to whether these companies can convert operational momentum into sustainable earnings growth, indicating that the oilfield services sector is regaining investor focus.
See More
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- Oil Price Increase: Oil prices surged approximately 1% due to President Trump's escalatory rhetoric towards Iran, with West Texas Intermediate futures nearing $63 per barrel, marking the highest level since late September 2025.
- Brent Crude Rally: Brent crude also advanced to around $68 per barrel, reflecting heightened risk premiums in global crude markets driven by fears of supply disruptions, particularly through critical energy chokepoints like the Strait of Hormuz.
- U.S. Supply Tightness: Supply disruptions from severe winter weather, particularly in the Gulf Coast and inland shale regions, have tightened near-term balances, contributing to a more than 9% increase in WTI crude this month and positioning the market to end a five-month losing streak.
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