Preview of oil services ETFs as earnings season starts

Rising oil prices and expanding overseas operations could strengthen oil services sector exchange traded funds as earnings season kicks into high gear.

Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) are slated to reveal third quarter earnings Friday, October 18.

BHI saw revenue rise 5% in the second quarter after dipping in the first quarter, according to Forbes.

UBS analysts point out that Baker Hughes will profit on its Latin American presence where margins are recovering, according to 24/7 Wall St.

About 58% of analysts rate Baker as a buy.

Schlumberger generated an average 6% year-over-year growth in revenue over the past four quarters, according to Forbes. UBS analysts believe the company’s international business shows strength.

About 95% of analysts rate Schlumberger as a buy.

Investors interested gaining broad exposure to oil services can take a look at the Market Vectors Oil Services (NYSEArca: OIH) and the iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ). [Bottom-Fishing With Refining-Heavy ETFs]