Top Stock to Buy #5 – Patterson-UTI Energy (PTEN)
Patterson-UTI Energy (NASDAQ:PTEN) is among the most recommended companies by Thompson Reuters’ First Call. This drilling services company is estimated to earn less this year than last ($2.14 in 2011 versus an estimate of $1.79 for 2012); however, after upgrading its rigs and modernizing, its long-term contracts have a backlog sufficient to positively impact future earnings.
Technically, PTEN is trading in a bull channel with a bottom in June at under $14. In November, the 50-day moving average crossed above the 200-day moving average — a long-term buy signal called a golden cross. The stock is under heavy accumulation and flashed a MACD buy signal in November. Buy PTEN as a long-term investment in the energy industry.
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