Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular strategy for finding undervalued stocks through fundamental analysis and traditional valuation metrics [2] - The Style Scores system is introduced, with a specific focus on the "Value" category for value investors [3] Oceaneering International (OII) - Oceaneering International (OII) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - OII's Forward P/E ratio is 13.81, significantly lower than the industry average of 18.73, with historical values ranging from 8.77 to 19.36 [4] - The P/CF ratio for OII is 8.17, which is attractive compared to the industry's average of 9.21, with a historical range of 5.73 to 13.09 [5] Subsea 7 (SUBCY) - Subsea 7 (SUBCY) is rated as a Zacks Rank 1 (Strong Buy) stock with an A grade for Value [6] - The P/B ratio for Subsea 7 is 1.39, lower than the industry average of 2.24, with historical values between 0.89 and 1.45 [6] - Both OII and SUBCY are identified as likely undervalued stocks, supported by their strong earnings outlook [7]

Core Viewpoint - Oceaneering International's stock experienced a significant increase of 5.3% to close at $26.17, driven by strong trading volume and rising oil prices due to geopolitical tensions in Venezuela [1][2]. Group 1: Stock Performance - Oceaneering International's shares rose 5.3% in the last trading session, contrasting with a 7.8% loss over the previous four weeks [1]. - The stock's recent performance is attributed to heightened oil prices following geopolitical instability in Venezuela, particularly the capture of President Nicolás Maduro by U.S. forces [2]. Group 2: Earnings Expectations - The company is projected to report quarterly earnings of $0.43 per share, reflecting a year-over-year increase of 16.2%, while revenues are expected to be $711 million, a slight decrease of 0.3% from the previous year [3]. - The consensus EPS estimate for Oceaneering International has remained unchanged over the last 30 days, indicating a potential lack of momentum in earnings estimate revisions [4]. Group 3: Industry Context - Oceaneering International is part of the Zacks Oil and Gas - Field Services industry, which is currently experiencing upward pressure on stock prices due to stable OPEC+ output levels and geopolitical factors affecting oil supply [2][5]. - Another company in the same industry, Helix Energy, saw a 5.8% increase in its stock price, although it has faced a -12.7% return over the past month [5].

Core Viewpoint - Oceaneering International Inc. is currently trading at $24.30, reflecting a slight decline in stock performance over the past month and year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1]. Group 1: Stock Performance - The stock has decreased by 0.65% over the past month and by 3.99% over the past year, indicating a potential concern for long-term shareholders [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating a company's market performance, comparing the current share price to earnings per share (EPS) [5]. - Oceaneering's P/E ratio stands at 10.68, which is significantly lower than the industry average of 22.32 in the Energy Equipment & Services sector, suggesting that the stock may be undervalued or that shareholders expect poorer performance compared to peers [6]. - A lower P/E ratio can indicate undervaluation but may also reflect a lack of expected future growth, highlighting the need for a comprehensive analysis beyond just the P/E ratio [8][9].

Group 1: Oil Price Outlook - The U.S. Energy Information Administration (EIA) projects the average spot price of West Texas Intermediate crude to decline to $51.42 per barrel in 2026, down from $65.32 per barrel in 2023 and $76.60 per barrel in 2022, due to rising worldwide oil inventory [2] - Low oil prices are expected to benefit the refining industry, as companies can process cheaper raw crude into final products like gasoline and diesel, enhancing refining operations in 2026 [3] Group 2: Operational Efficiency and Cost Management - Advanced drilling techniques such as horizontal drilling and hydraulic fracturing have significantly reduced operational costs in oil and gas, leading to low break-even costs for exploration and production activities, making them potentially profitable despite low oil prices [4] - Demand for oilfield services is anticipated to remain favorable in 2026, benefiting companies that assist upstream operations [4] Group 3: Investment Opportunities - Phillips 66 (PSX) is highlighted as a leading refiner with a crude utilization rate of 99% in the September quarter of 2023, the highest since 2018, and is well-positioned to capitalize on lower oil prices by using Canadian heavy crude [5][6] - Valero Energy Corporation (VLO) operates 15 refineries with a combined capacity of 3.2 million barrels per day and focuses on maximizing profits through efficient refinery utilization and selective investments, also expected to benefit from low input costs [6][7] - Oceaneering International (OII) provides robotic solutions and services to offshore energy companies and is well-positioned to gain from favorable oilfield service demand and growth in its Aerospace and Defense (ADTech) business in 2026 [8][9]

Core Viewpoint - Oceaneering has appointed Michael Sumruld as Chief Financial Officer (CFO), effective January 1, 2026 [1] Company Summary - The appointment of Michael Sumruld as CFO is a strategic move for Oceaneering, indicating a focus on leadership continuity and financial management [1]

Core Viewpoint - Oceaneering has appointed Roger Jenkins to its Board of Directors, indicating a strategic move to enhance its leadership team and governance structure [1] Company Summary - The appointment of Roger Jenkins is part of Oceaneering's efforts to strengthen its board with experienced professionals [1] - Roger Jenkins brings a wealth of experience and expertise that is expected to contribute positively to the company's strategic direction [1]

Industry Overview - The Zacks Oil and Gas - Field Services industry provides support services to exploration and production companies, including well maintenance, drilling equipment leasing, and seismic testing [3] - The industry is positively correlated to upstream expenditures, with companies expanding into liquefied natural gas (LNG) facilities to capitalize on contracts and reduce carbon emissions [3] Current Market Dynamics - Demand for oilfield services is expected to remain strong as upstream businesses, like those of Exxon Mobil Corporation, are likely to be profitable despite low oil prices due to advancements in drilling technologies [1][4] - The price of West Texas Intermediate (WTI) crude is currently below $60 per barrel, yet exploration and production activities in areas like the Permian Basin remain profitable due to lower break-even prices [4] Financial Health - The industry has a low debt exposure, with a composite debt-to-capitalization ratio of only 32.6%, allowing companies to navigate challenging business environments effectively [5] - The current trailing 12-month EV/EBITDA ratio for the industry is 7.96X, significantly lower than the S&P 500's 18.56X, indicating potential undervaluation [14] Technological Advancements - Oilfield service companies are increasingly providing smarter technologies to help upstream companies reduce costs and emissions, leading to higher demand for electric subsea systems and digital monitoring technologies [6] Industry Outlook - The Zacks Oil and Gas - Field Services industry holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 Zacks industries, indicating solid near-term prospects [7][8] Key Players - Halliburton Company (HAL) is well-positioned with a strong presence in all stages of the oilfield lifecycle and is focused on cleaner energy solutions, currently holding a Zacks Rank of 2 (Buy) [17] - Oceaneering International, Inc. (OII) is recognized for its robotic solutions and is expected to see growth in its Aerospace and Defense business, currently holding a Zacks Rank of 1 (Strong Buy) [19] - Baker Hughes (BKR) is also well-positioned to benefit from ongoing exploration and production activities, supported by a strong balance sheet for growth and acquisitions [21]

HOUSTON--(BUSINESS WIRE)--Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) announced today that President and Chief Executive Officer, Rod Larson and other members of management will host meetings with institutional investors at the Goldman Sachs Global Energy, CleanTech & Utilities Conference in Miami, FL on Tuesday, January 6, 2026. Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, and manufact ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each targeting different investment strategies [3][4][5][6] - Value Score focuses on identifying undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends to identify favorable investment opportunities [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Its Importance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.81% since 1988 [7] - A large number of stocks are rated, making it essential to use Style Scores to narrow down choices [8] Stock Highlight: Oceaneering International (OII) - Oceaneering International, Inc. is a leading provider of offshore equipment and technology solutions, generating revenues of $2.7 billion last year [11] - OII holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of B, indicating strong investment potential [12] - The company has seen a 17% increase in share price over the past four weeks, with upward revisions in earnings estimates for fiscal 2025 [12] - OII's average earnings surprise stands at +12.3%, further solidifying its attractiveness to investors [12][13]