Peekaboo! The oil and gas equipment and services sector has awoken from its slumber, thanks to crude’s break above $80 a barrel. The frigid weather across most of the country (orange freeze in Florida!) has certainly done the trick for these names.
Oil services is now the 8th best performing stock industry group out of over 100 for 2010 with a year-to-date showing of 7.4%. Baker Hughes (BHI), Smith International (SII), Trico Marine (TRMA) and Superior Well Services (SWSI) are all up over 10% this week.
Here’s a look at how the industry (in blue) has done relative to the S&P 500 (red):
Oil services may be the beneficiary of the money that’s been rotating out of various technology industries despite the (unjustified) hoopla over CES.
After a relatively frustrating 4th quarter for energy equipment companies, we’ll see if they now get their time in the limelight.