Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Patterson-UTI (PTEN) Analysis - Patterson-UTI (PTEN) has shown a price increase of 4.7% over the past four weeks, indicating growing investor interest [3] - PTEN gained 2.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.99, suggesting it moves 99% higher than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - PTEN has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - PTEN is trading at a Price-to-Sales ratio of 0.61, indicating it is relatively cheap at 61 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - PTEN is not the only stock that meets the 'Fast-Paced Momentum at a Bargain' criteria; there are several other candidates worth considering [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Viewpoint - Patterson-UTI Energy reported a wider-than-expected loss in Q4 2024, with significant declines in revenue and operating income across its segments, raising concerns about its future performance [2][3][6][7]. Financial Performance - The adjusted net loss for Q4 2024 was 12 cents per share, worse than the expected 10-cent loss, and a decline from a profit of 19 cents in the same quarter last year [2]. - Total revenues were $1.2 billion, missing the Zacks Consensus Estimate by 4.2% and down 26.6% year-over-year [3]. - Adjusted EBITDA for the quarter was $225 million, excluding certain charges [3]. Segmental Performances - **Drilling Services**: Revenues totaled $408 million, down 12% from $463.6 million a year ago, but exceeded estimates of $364.4 million. Operating income was $73 million, down from $92.7 million [6]. - **Completion Services**: Revenues dropped 35.8% to $651 million from $1,014.4 million year-over-year, missing estimates of $736.5 million. The segment reported an operating loss of $50.2 million compared to a profit of $70.3 million in Q4 2023 [7]. - **Drilling Products**: Revenues were $86.5 million, a decline of 1.8% from $88.1 million a year ago, missing estimates of $89.4 million. Operating profit was $0.3 million, down 23% year-over-year [8]. - **Other Services**: Revenues were $16.4 million, down 10.4% from $18.3 million year-over-year, but exceeded estimates of $15.1 million. Operating income was $2.1 million, up from $1 million in Q4 2023 [9]. Capital Expenditure & Financial Position - Capital expenditures in the reported quarter were $140.4 million, down from $205.3 million in the prior year [11]. - As of December 31, 2024, the company had cash and cash equivalents of $241 million and long-term debt of $1,219 million, with a debt-to-capitalization ratio of 26% [11]. - The company generated $1.2 billion in cash from operations and $525 million in free cash flow [11]. Shareholder Returns - The board declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, to be paid on March 20 [4]. - In Q4, the company returned $52 million to shareholders, with $20 million used for share repurchases [5]. Outlook - There has been an upward trend in estimates revisions, with a consensus shift of 34.54% [12]. - Patterson-UTI holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].