By Doug Busch
While much of the spotlight in energy tends to fall on exploration and production companies, oil equipment names offer a different kind of opportunity.
Often described as the "pick and shovels" of the sector, companies like SLB and Halliburton provide the tools, services, and infrastructure that make drilling possible. That means they can benefit from rising industry activity, regardless of which producers succeed, giving investors a more stable way to capitalize on strength in the energy market.
We can visually see this group via the VanEck Oil Services ETF. The top-heavy fund holds 25 stocks, mostly domestic, with the top three components making up nearly 40%. The ETF is up 30% year to date but down 9% from its most recent 52-week highs, which occurred at the very round $400 number, after doubling in price from the last April's lows. This presents a nice risk/reward opportunity as it approaches its upward-sloping 50-day simple moving average. Notice how strong it has been against the overall market on the ratio chart versus the S&P 500.
With that in mind, let's take a closer look at two names in the group that are showing attractive technical setups.
Helmerich & Payne, a provider of drilling services, is up 21% year to date and 36% over the last year, and pays a dividend yield of close to 3%. On the ratio chart against the VanEck Oil Services ETF it was a strong performer during the second half of last year and is now regaining momentum against the group again. Last week displayed excellent relative strength rising almost 5% as the OIH fell .6%.
Looking at the daily chart of HP we see the stock started a firm uptrend after breaking above a bearish descending triangle. We know from false moves often come powerful ones in the opposite direction. The stock quickly doubled in price between August and December.
In October, it recorded a bullish golden cross as the 50 day simple moving average crossed above the 200 day simple moving average. It has enjoyed comforting support at the 50 day SMA since last summer. I think one can enter here and look for the stock to gravitate toward $46 in the second half, which would equate to a 35% move from current prices. Remain bullish above $32.50.
Helmerich & Payne was trading around $35 Tuesday.
Landbridge, another oil equipment play, has had a dazzling start to 2026, up more than 40%. The stock was higher six of the last 10 weeks. Two of the advancers rose by at least 15%, and all six gainers closed right at the highs for the weekly range, signaling institutional support. On its weekly chart it is carving out a nice double bottom base, and March has broken above a short four month downtrend on the ratio chart versus the OIH.
Looking at the daily chart notice the recent bullish golden cross where the 50 day simple moving average crossed above the 200-day simple moving average last week. That happened as the stock broke above a bullish inverse head and shoulders pivot of $60.
It has since formed a bull flag as the last couple of weeks digest a three week winning streak that gained 30% during the weeks ending between Feb. 13-27. There has been very persistent resistance just above the round $80 number dating back to November 2024 after a huge move from $20 in March of that year. I think you can enter here and look for the stock to move toward $95 by year end, which would be a 34% gain from current prices. Remain bullish above $67.
Landbridge was trading around $74 Tuesday.
Rather than betting on who finds the next barrel, investors may find value in those enabling the entire process.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 17, 2026 13:03 ET (17:03 GMT)
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