Oil States International, Inc. (OIS) is facing a significant decline due to tariffs and falling oil prices.
From Yahoo Finance: 2025-04-09 14:40:00
The energy industry is facing a significant downturn, with oilfield services particularly hard hit by a 25% tariff on steel and aluminum. Global oil prices have plummeted, making drilling less profitable. The US oil industry needs prices between $61 and $70 per barrel to be profitable, but ongoing trade war has pushed prices down to $57.
Morningstar has lowered fair value estimates for major oilfield services companies following President Trump’s tariff announcements, predicting a 2-3% revenue drop this year. Each dollar of revenue lost translates to an operating profit loss of $1.25 to $1.35. Consequently, the majority of the Energy Stocks that Crashed This Week belong to the energy services sector.
Oil States International, Inc. (OIS) has experienced a 37.5% share price decline between April 1 and April 8. OIS is a global provider of products and services for the oil and natural gas industry. The company continues to struggle due to the challenges facing the oilfield services industry, including tariffs and falling oil prices.
Despite its decline, Oil States International, Inc. (OIS) ranks third on the list of energy stocks that lost the most this week. Insider Monkey believes in the potential of AI stocks for higher returns in a shorter timeframe. For those interested in AI stocks with promising growth potential, especially compared to OIS, consider looking into the cheapest AI stock highlighted in their report.
In Q4 2024, OIS reported mixed results with revenue of $164.6 million missing estimates by $8.73 million. The company’s performance reflects the overall bearish sentiment in the oilfield services industry. While energy companies have potential, Insider Monkey sees greater promise in AI stocks for delivering higher returns. For investors seeking growth opportunities, exploring AI stocks may be more beneficial than energy stocks like OIS.
Read more at Yahoo Finance: Why Oil States International, Inc. (OIS) is Losing This Week