Oil Services Stocks: 'Huge' Growth Ahead
Tim Parker, an energy analyst at T. Rowe Price, says his best picks are global oil services firms.
“I think they’re best positioned over the next couple of years, because...there’s huge growth in the number of deep water rigs on the way. There will be a doubling of the deep-water rig fleet, and service companies care about that, because their highest margin (and) highest revenue opportunities tend to be on these deep-water projects.”
Parker likes Schlumberger, Baker Hughes and Halliburton . He says these companies are likely to see very strong earnings growth – in the mid to high 20s – for the next few years.
Parker also recommended Exxon Mobil and Chevron , which he says are cheap right now.
Disclosure information was not immediately available for Parker or his company.