When a missile strike in the Strait of Hormuz and a 33% drop in ship traffic suddenly put a key choke point for global oil supply in question, energy risk stopped being an abstract headline and became a live pricing force. With oil up over 1% and Iran openly talking about banning U.S. and Israeli vessels, investors face a real fork in the road. This article walks through three stocks from an Energy Sector screener that appear closely tied to these events and explains how this kind of shock can create both potential openings and reasons for caution.

The stocks highlighted below are only a starting sample, and the full screen surfaced 19 more companies with equally compelling narratives that are not covered here. To size up that broader opportunity set, head straight into the Energy Sector (Oil & Gas Producers) screener to identify, compare, and analyze potential high-conviction energy plays.

Pason Systems (TSX:PSI)

Pason Systems supplies instrumentation, automation software and real time data services that help oil and gas drillers run rigs more efficiently, and it is also building a foothold in solar and energy storage. Most revenue comes from North American Drilling at about CA$269 million, with smaller contributions from Completions at about CA$58 million, International Drilling near CA$50 million, and Solar and Energy Storage at about CA$32 million. The company is mid sized with a market cap of roughly CA$975 million.

Investors looking at Pason Systems in the current Strait of Hormuz shock are essentially asking how a specialist in drilling data and automation reacts when producers see stronger pricing for their barrels. The company is already seeing healthy demand for its software heavy offerings and has secured a sizeable project with a major North American producer, which points to stickier, higher quality revenue as activity responds to higher oil prices. At the same time, margins are under pressure versus last year and returns on equity are in single digits, so the business still has work to do to convert growth into stronger profitability. Add in early stage diversification into solar and storage and you get a company that sits right on the fault line between traditional drilling and the energy transition, which is where the more interesting part of this story starts.

Pason Systems appears to be quietly shifting from pure drilling technology to a broader software-focused story. However, single-digit returns and margin pressure leave key questions open. Get the 3 key rewards and 2 important warning signs that could change how you see the stock.

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Pason Systems and the other two stocks here are just a few examples pulled from a single screen, and the same tools are available to you. Use our flexible Screener to mix filters like valuation, balance sheet strength and risk, or jump straight into any of our curated Investing Ideas.

Helix Energy Solutions Group (HLX)

Helix Energy Solutions Group is a Houston based offshore services company that helps oil and gas producers and offshore operators manage wells, subsea infrastructure, decommissioning and production facilities across regions such as Brazil, the Gulf of Mexico, the North Sea and Asia Pacific. Its four main lines of work are well intervention, subsea robotics, shallow water abandonment and production facilities, and it also supports offshore wind and other marine projects. The company has a market cap of about US$1.4b, which places it in the mid cap bracket for energy services.

Investors watching the Strait of Hormuz disruption may see Helix Energy Solutions Group as a way to get direct exposure to offshore activity without owning a producer outright. The company is tied into long term well intervention and decommissioning work, growing robotics activity linked to offshore wind, and a pending merger with Hornbeck Offshore Services that is expected to create revenue and cost benefits over time. At the same time, Helix still has modest profitability, a high P/E and a recent one off loss that raise fair questions about earnings quality and balance sheet risk. That mix of supply shock relevance, contract visibility and financial trade offs is what makes Helix worth a closer look in this screener.

Helix Energy Solutions Group sits at the crossroads of long term offshore contracts and a high P/E that many investors may be glossing over. Scan the full 2 key rewards and 2 important warning signs to see what might be hiding under the surface.

Expro (XPRO)

Expro is a Houston based energy services company that helps oil and gas producers with well construction, flow management, subsea access and well integrity in both onshore and offshore settings. Revenue is spread across North and Latin America at about US$539 million, Europe and Sub-Saharan Africa at roughly US$483 million, the Middle East and North Africa at around US$351 million, and Asia-Pacific at about US$182 million. The company has a market cap near US$1.9b.

Expro provides direct upstream exposure at a time when Strait of Hormuz risk is putting a spotlight on secure oil supply and offshore capacity. The company has global contracts, a growing toolkit in well construction and intervention, and a recent acquisition of Enhanced Drilling that expands its managed pressure drilling offering as operators look to keep projects on track despite geopolitical shocks. At the same time, profitability is thin, the P/E is far above sector averages and one off losses have weighed on recent results, so a lot has to go right for the current valuation to hold. That combination of strong demand signals and execution risk is a key reason Expro is drawing attention in this screener.

Expro’s global well services and rich contract pipeline are only half the story. The real twist is how its thin margins and high P/E line up against the 2 key rewards and 2 important warning signs investors keep overlooking.

Seeking Alternatives Beyond Energy Plays

Fresh ideas do not stay under the radar for long. New themes can gain breakout momentum fast, and laggards can drop before the broader market reacts. Consider acting promptly when you identify opportunities that fit your strategy and risk tolerance.

• Identify companies that have shown relative stability compared with peers by scanning the 9 resilient stocks with low risk scores, which may still be outside the focus of many investors.
• Explore businesses supporting AI infrastructure by reviewing the 55 AI infrastructure stocks, focusing on companies involved in data centers and semiconductor ecosystems.
• Evaluate miners with strong balance sheets by checking the 30 elite gold producer stocks, paying attention to how the market is currently valuing their cash positions and production profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.