If there is a silver lining for oil services ETFs, it is twofold. First, valuations for some of the strongest names in the group are compelling. Second, those strong names, while familiar, are becoming easier to identify.
With the Halliburton’s (NYSE: HAL) pending acquisition of Baker Hughes (NYSE: BHI) that combined company along with Schlumberger (NYSE: SLB) will control 62% of the market for drilling technology services. Additionally, National Oilwell Varco (NYSE: NOV), another higher quality oil services name, continues to be a rumored takeover target as its shares have dipped 15% over the past year.
The average P/E on Sclumberger, Halliburton and National Oilwell is now below 13, well below that of the S&P 500. [Contrarian ETF Ideas for 2015]
Market Vectors Oil Service ETF
