3 Oil & Gas Drilling Stocks Backed by Strong 2026 EPS Growth

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markets open in 1h 22m S&P Futures 7,866.50 +10.75 +0.14% Dow Futures 52,079.00 +144.00 +0.28% Nasdaq Futures 30,758.00 -33.50 -0.11% Russell 2000 Futures 2,805.40 +5.30 +0.19% 10-Yr Bond 5.22 -0.02 -0.44% VIX 15.36 +0.09 +0.59% Gold 4,163.00 -14.30 -0.34% Bitcoin USD 83,585.94 +323.94 +0.39% Crude Oil Nov 26 95.73 +1.59 +1.69% US Private Equity 10,967.34 -1.52 -0.01% ADVERTISEMENT 3 Oil & Gas Drilling Stocks Backed by Strong 2026 EPS Growth Nilanjan Choudhury March 4, 2026 8 min read CL=F NG=F RIG The Zacks Oil and Gas - Drilling industry includes companies that provide rigs, equipment and crews to explore and develop oil and gas reserves worldwide.

These services are essential but expensive, and demand depends more on contracting activity and available rigs than on oil prices alone.

Drilling stocks are also highly volatile, particularly offshore names whose share prices tend to move closely with crude prices.

Oversupply in the oil market and strict capital discipline among operators are limiting new drilling activity.

The business remains capital-intensive, with large upfront investments and uneven cash flows.

That said, rising natural gas demand and improving international activity — especially in the Middle East and Latin America — could offer some support over time.

For investors willing to ride the volatility, Noble Corporation NE, Transocean Ltd.

RIG and Nabors Industries NBR are three stocks worth watching.

The Zacks Oil and Gas - Drilling industry consists of companies that provide rigs (or specialized vehicles) on a contractual basis to explore and develop oil and gas.

These operators offer drilling rigs (both land-based/onshore and offshore), equipment, services and workforce to exploration and production companies worldwide.

Drilling for hydrocarbons is costly and technically difficult, and its future primarily depends on contracting activity and the total number of available rigs at a given time rather than the price of oil or gas.

Within the industry, it's interesting to note that the volatility associated with offshore drilling companies is much higher than that of their onshore counterparts, and their share prices are more correlated to the price of oil.

Overall, oil and natural gas drilling stocks are among the most volatile in the entire equity market.

Oversupplied Oil Market and Capital Discipline: Global oil supply has at times exceeded demand, keeping crude prices under pressure.

Even brief price rebounds have not yet translated into a sustained pickup in drilling.

Operators remain disciplined, prioritizing shareholder returns over production growth.

If oil prices weaken further, activity could decline modestly, particularly in oil-weighted basins.

In that scenario, pricing competition may intensify and service margins could face renewed pressure.

Structural Growth in Natural Gas Demand: Natural gas demand is building real momentum.

LNG exports are expanding, AI-driven power consumption is rising and several regions are pushing energy security strategies.

This creates a steady need for upstream investment.

Gas-focused rig activity has already shown signs of improvement, and international gas projects are gaining traction.

If this trend continues, drilling demand could strengthen over the next few years.

In a tightening gas market, service pricing may firm up as operators compete for high-spec rigs and completion equipment.