“A separate report from Robert W. Baird also put FMC Technologies, Inc. and Dril-Quip, Inc. into the merger candidate ring as two potential takeover candidates,” according to 24/7 Wall Street.
Investors should keep in mind that the oil services sector is heavily reliant on capital spending cycles in the energy industry. The recent sharp cuts in capital expenditure budgets in 2015 contributed to the pullback in oil services – U.S. companies are expected to spend about 20% less than the average over 2014, with some cutting expenditures by around 50%.
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.
Market Vectors Oil Services ETF
