Archer’s agreement to rent two high spec drilling rigs from Patterson-UTI Energy (PTEN) for work in the Vaca Muerta shale gives investors a fresh data point on PTEN’s international drilling footprint.

The Archer agreement lands after a strong run in the stock, with a 30 day share price return of 20.71% and a 90 day share price return of 29.04%. This comes even as the 1 year total shareholder return sits at a 20.75% loss and the 3 year total shareholder return at a 50.13% loss, so recent momentum contrasts with weaker longer term outcomes ahead of the upcoming fourth quarter 2025 earnings call.

If this kind of contract news has your attention, it could be a good moment to scan fast growing stocks with high insider ownership for other companies where insiders are backing strong growth stories.

With the stock trading close to its analyst price target, and a modelled intrinsic value that is much higher than the current US$7.11 share price, the real question is whether there is still a buying opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 1.2% Undervalued

The most followed narrative puts Patterson-UTI Energy’s fair value at about US$7.20 per share, slightly above the recent US$7.11 close, and builds a detailed case around cash flows, margins and future activity levels.

The analysts have a consensus price target of $7.467 for Patterson-UTI Energy based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $10.0, and the most bearish reporting a price target of just $6.25.

Curious what has to happen to revenue, margins and the share count to support that valuation gap, and why the assumed future P/E sits below sector levels, even with those earnings assumptions baked in.

Result: Fair Value of $7.20 (UNDERVALUED)

However, there are still clear watchpoints, including softness in drilling and completion activity and high ongoing capital needs that could pressure margins if conditions remain weak.

Build Your Own Patterson-UTI Energy Narrative

If you see the story differently, or you would rather test the assumptions against the raw numbers yourself, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your Patterson-UTI Energy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.