Turbulence continues to plague the oil market and has caused oil prices to be quite volatile over the past year. Oil companies, as a result, aren't spending as much money to drill new wells, which is affecting the oil-field services market. And that has put pressure on the stocks of companies in the sector, including Core Labs (NYSE: CLB). Overall, the oil reservoir specialist's stock has plunged about 35% so far this year, which pushed its dividend yield up above 5.5%.
That sell-off doesn't make much sense, given the positives the company sees up ahead in the offshore drilling market. The arrival of the long-awaited rebound in that market is one of the three main reasons I recently bought more shares of Core Labs.
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Source: Motley Fool
(August 25, 2019 - 11:03 AM EDT)
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