By Doug Busch

Oil equipment stocks are starting to come back to life after a long stretch of underperformance. A glance at the one-year daily chart of the VanEck Oil Services ETF shows some encouraging signs:

First, the ETF is finally showing conviction above the $250 level, an area it failed to breach three times during June and July. More importantly, OIH is now getting comfortable above its 200-day simple moving average $(SMA)$, a line that acted as firm resistance in Q4 2025 and again this January. That shift could mark a meaningful change in trend. While bulls may want to see some sideways action as the ETF approaches the sizable 11% gap from April 2, strength beneath the surface is building.

The VanEck Oil Services ETF was trading around $260 Thursday, roughly unchanged on the day.

Several component names are starting to quietly pop up on buy scans:

Baker Hughes, a powerhouse in the natural gas equipment space, is outperforming in 2025, up 14% versus a 4% decline for the VanEck Oil Services ETF. Its recent acquisition of peer Chart Industries was a bold strategic move that appears to have investors' approval.

Technically, the stock is breaking out of a bullish seven-month inverse head and shoulders pattern. It cleared the $46.50 pivot on Wednesday, which could presage a measured move to $59. BKR gained 3% the first three days of this week and is on pace for a fourth straight positive week. That would be its longest winning streak of the year. Baker Hughes has also firmly surpassed its 16% earnings-fueled surge from the week ending July 25, reinforcing the momentum narrative.

Baker Hughes was trading around $47 Thursday, unchanged from the previous day's close.

Helmerich & Payne, once considered a best-in-breed name among oil equipment plays, is showing signs of renewed strength with a 19% rally over the past month. The stock is still down 35% year to date but offers a compelling 4.8% dividend yield.

The daily chart paints a strong technical picture, with the 50-day SMA curling higher for the first time this year. The stock recently broke above a bearish descending triangle pattern, a move technicians often read as a bear trap. As the saying goes, "from false moves come fast ones in the opposite direction," and the stock's sharp rebound may be just that. A bullish flag has now formed and a breakout above $21.25 could trigger a quick run to $25.

Helmerich & Payne was trading around $20.6 Thursday, down about 1%.

For investors seeking a small-cap energy equipment name with momentum, Expro Group could fit the bill. The stock has climbed 26% over the past three months, handily outgaining the 6% return in the VanEck Oil Services ETF.

Technically, the stock recorded a bullish island reversal, with a 32% earnings-inspired gap up on July 29 that followed a gap down on April 4. The $10 level acted as key support in mid August, starting the formation of a bull flag, defined as a powerful advance followed by a short tight digestive phase. A breakout above the $12.50 pivot could trigger a swift move toward $15 by November. Building on the bullish theme, the last three weeks all ended very taut, with each close separated by just 13 cents. Breakouts from this type of coiling action tend to be very powerful.

Expro Group was trading around $12.50 Thursday.

Write to Doug Busch at douglas.busch@barrons.com

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September 11, 2025 14:45 ET (18:45 GMT)

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