There's a debate going on in the markets as to whether oilfield service stocks are still too expensive given the industry downturn that's dragging on because of low oil prices. Earnings coming out of the service companies in the first quarter were still negative, which doesn’t square with what valuations suggest, Charles Cherington, managing partner of oilfield services-focused private equity firm Intervale Capital, said in an interview late last month. "Things are still pretty bad in service land," the private equity investor said. Analysts at energy-centric investment bank Tudor, Pickering, Holt & Co. aren't too hung up on oilfield services stocks not looking so cheap. It also favors a slew of small-cap diversified services companies, some of which could be picked up by bigger companies in an industry consolidation, including Key Energy Services, Basic Energy Services, Emerge Energy Services, EcoStim Energy Solutions, Flotek Industries, Pioneer Energy Services, RPC, Solaris Oilfield Infrastructure and Superior Energy Services.

Source: Forbes June 19, 2017 16:07 UTC