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Patterson-UTI Energy Sees Rig Count Steady Amidst Industry Risks

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 1/2/2026, 4:11 pm ET 1/2/2026, 4:11 pm ET | 5 min 5 min read
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Patterson-UTI Energy Inc. stocks have been trading up by 5.89 percent amid positive investor sentiment after new market insights.

Energy industry expert:

Analyst sentiment – neutral

Market Position & Fundamentals: Patterson-UTI Energy, Inc. is currently struggling with profitability, as evidenced by negative EBIT, pretax, and net profit margins. Their gross margin of 52.4% indicates a high production efficiency, though this is not translating to the bottom line due to high operational and interest expenses. With a revenue of approximately $5.38 billion and a current ratio of 1.6, the company maintains a solid cash position for immediate obligations. Additionally, their high price-to-free-cash-flow ratio implies potential undervaluation, given their price-to-book and price-to-sales ratios are below 1. Though profitability remains an issue, the strong revenue base and manageable debt levels present opportunities for improvement.

Technical Analysis & Trading Strategy: Recent price action shows a steady increase in Patterson-UTI’s stock price, with a clear bullish trend. The weekly pattern indicates a rising grip, culminating in a jump from $5.98 to $6.47. Volume patterns suggest a breakout could be sustained, particularly as prices consistently close near their weekly highs. Given the current uptrend, traders should consider buying on dips with a stop-loss at $6.08. Potential resistance is expected around $6.50, where profit-taking is advisable.

Catalysts & Outlook: Patterson-UTI Energy operates a significant fleet of drilling rigs, with an average utilization of 94 rigs in recent months. Despite operational strength, external challenges such as economic and regulatory pressures could impact their performance. Compared to industry benchmarks, the company’s high rig utilization signals robust activity levels, indicating resilience. However, trading strategy should be adjusted with attention to potential resistance near $6.50 and support around $6.00. Firm prospects appear mixed, with upside potential given stabilization or reduction in operational expenses. Overall, a cautious yet optimistic outlook is maintained given the firm’s strong operational base amid challenging conditions.

Candlestick Chart

Weekly Update Dec 29 – Jan 02, 2026: On Friday, January 02, 2026 Patterson-UTI Energy Inc. stock [NASDAQ: PTEN] is trending up by 5.89%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Patterson-UTI Energy’s recent financial performance is characterized by a blend of steady operational figures juxtaposed with certain financial challenges. The company reported a revenue totaling approximately $5.38B, derived from its drilling and completion services. Despite a significant revenue, the company faces profitability hurdles, as evidenced by a negative EBIT margin of -1.4% and a diluted earnings per share (EPS) of -$0.10, indicating operational inefficiencies that overshadow its significant gross margin of 52.4%.

The financial metrics reflect a challenging environment, with a notable amount of revenue not translating into profitability. Additionally, the company’s financial strength metrics, such as a current ratio of 1.6 and a total debt to equity ratio of 0.4, indicate liquidity is maintained, albeit with a moderate reliance on debt financing. Meanwhile, Patterson-UTI’s stock exhibited slight fluctuations, reflected in the recent trading range from $5.92 to $6.47 over the last few sessions, hinting at investor caution amidst recent profit concerns. The stock’s price-to-book ratio stands at a modest 0.74, potentially suggesting undervaluation relative to its tangible assets.

These figures highlight a blend of stability in operational execution with pressing financial weaknesses, requiring strategic management of existing assets and cash flows to support both short-term operational effectiveness and long-term growth ambitions.

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Conclusion

Patterson-UTI Energy’s current landscape is marked by consistent drilling activities amid a series of external challenges from economic and regulatory fronts. The steady rig count underscores a balance between maintaining operations and navigating broader market forces. Financial metrics suggest an organization striving for efficiency against the backdrop of profitability challenges, with negative profit margins illuminating the need for strategic recalibration.

Overall, Patterson-UTI stands at a critical juncture where sustaining operational stability and overcoming financial inefficiencies are central to enhancing trader confidence and securing future growth. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” As market conditions and regulatory landscapes evolve, adaptive strategies and sound financial management will be pivotal for Patterson-UTI to leverage its tangible asset base and transform challenges into growth opportunities.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”