Zacks Industry Outlook NOV, Oil States International and Natural Gas Services

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markets open in 1h 15m S&P Futures 7,871.50 +15.75 +0.20% Dow Futures 52,116.00 +181.00 +0.35% Nasdaq Futures 30,780.00 -11.50 -0.04% Russell 2000 Futures 2,807.90 +7.80 +0.28% 10-Yr Bond 5.22 -0.02 -0.44% VIX 15.31 +0.04 +0.26% Gold 4,169.10 -8.20 -0.20% Bitcoin USD 83,714.32 +452.32 +0.54% Crude Oil Nov 26 95.65 +1.51 +1.60% US Private Equity 10,967.34 -1.52 -0.01% ADVERTISEMENT Zacks Industry Outlook NOV, Oil States International and Natural Gas Services Zacks Equity Research August 3, 2026 6 min read OIS NGS NOV For Immediate Release Chicago, IL – August 3, 2026 – Today, Zacks Equity Research NOV Inc.

Link: https://www.zacks.com/commentary/2965873/3-oilfield-equipment-stocks-that-can-thrive-amid-industry-headwinds Middle East instability could hurt earnings by delaying offshore projects, disrupting equipment deliveries and raising operating costs.

Also, conservative capital spending by upstream players is hurting demand for drilling and production equipment, creating a challenging outlook for the Zacks Oil and Gas- Mechanical and Equipment industry.

Companies striving to navigate these industry challenges include NOV Inc.

The Zacks Oil and Gas - Mechanical and Equipment industry comprises companies that provide necessary oilfield equipment – production machinery, pumps, valves and several other drilling appliances like rig components – to exploration and production companies.

These help upstream energy players extract crude oil and natural gas from fields, both onshore and offshore.

Hence, the well-being of oilfield equipment businesses is positively correlated to expenditures by upstream companies.

These companies receive deals from integrated energy firms and independent as well as national oil and gas companies.

Oilfield equipment providers also design, manufacture, engineer and install products used to treat and process crude oil, natural gas and others.

Their products comprise gadgets and instruments for gas compression packages and water treatment works.

Conservative Capital Spending by Upstream Players: Exploration and production companies are becoming more conservative in their capital expenditures for upstream operations.

This shift is driven by shareholders who want these companies to prioritize returning capital over increasing spending on production.

This trend is likely to diminish demand for drilling and production equipment.

Lower Yield Than Sector : The composite stocks belonging to the industry have consistently been generating lower dividend yield than the oil energy sector over the past five years.

Middle East Disruption Remains a Major Risk: The industry's exposure to the Middle East creates a meaningful earnings risk.

Regional instability has disrupted offshore activity, postponed customer work and increased the cost and complexity of transporting equipment and spare parts.

A slower-than-expected recovery in the region could therefore weigh on revenues, raise operating expenses and pressure profitability across affected companies.

The Zacks Oil and Gas - Mechanical and Equipment is a 12-stock group within the broader Zacks Oil - Energy sector.

The industry currently carries a Zacks Industry Rank #153, which places it in the bottom 38% of more than 250 Zacks industries.

The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects.