You know those stereotypical oil field “beam-style” pumps, swinging up and down across Texas fields? Yeah, Lufkin Industries (NASDAQ:LUFK) makes those — along with a whole host of other sophisticated pumps and power-transmission equipment, while also providing various oil-field maintenance services.
That puts it in a good position to profit as wells move into the production phase — perhaps even more so as the various shale fields require specialized pressure pumping devices to tackle fracked wells’ depths.
Execution at Lufkin has been so-so lately, causing its shares to sink badly. However, like Exterran, the longer-term picture for Lufkin is a bit rosier — especially considering just how vital its equipment is to the oil and gas sector.
Shares of LUFK are currently trading for roughly $30 below their 52-week highs — now that the momentum players have left the stock. This allows value hounds to come in scoop up shares at a more reasonable price.
As of this writing, Aaron Levitt did not own a position in any of the aforementioned securities.