On Oct 3, Zacks Investment Research upgraded
Pioneer Energy Services Corp.
) to a Zacks Rank #1 (Strong Buy).
NOBLE CORP (NE): Free Stock Analysis Report
PACIFIC DRILLNG (PACD): Free Stock Analysis
PIONEER EGY SVC (PES): Free Stock Analysis
TESCO CORP (TESO): Free Stock Analysis Report
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Why the Upgrade?
The drilling & exploration company Pioneer Energy Services
Corp. has delivered positive earnings surprises in 3 of the last
4 quarters with an average beat of 97.62%. The long-term sales
growth of the company is 18.67%.
The company registered another strong performance in the last
quarter, with its earnings per share of 2 cents surpassing our
estimate of a loss of 4 cents by 150%. The top line too beat the
Zacks Consensus Estimate by nearly 6%.
The strong performance has given Pioneer Energy the financial
flexibility to lower outstanding debts. Pioneer Energy Services
expects capital expenditure for 2013 to be between $140 million
and $160 million. Capital spending will enable the company to
fund its new-build drilling rig program, upgrade its drilling
rigs and procure Production Services equipment besides carrying
out routine capital expenditures.
The capital invested by the company to upgrade its drilling rigs
is yielding positive results. Pioneer Energy Services rigs are
performing well, with the overall rig fleet running at less
than 2% downtime, and new rigs running less than half of 1%
downtime. This level of performance efficiency will ensure more
clients for the company.
The Zacks Consensus Estimate for 2013 increased 10% in the last
60 days to (9 cents) per share and, for 2014, the consensus
increased 200% in the last 60 days to 3 cents per share.
Other Stocks to Consider
Besides Pioneer Energy Services, a few other companies in the
sector are also performing well and have a favorable Zacks Rank.
The stocks worth considering are
Pacific Drilling S.A.
). Noble Corp. and Pacific Drilling have a Zacks Rank #2 (Buy)
while Tesco Corporation has a Zacks Rank #1 (Strong Buy).