Oil Equipment Stocks Struggle Amid Industry Headwinds

The oil and gas equipment industry is facing headwinds due to Middle East instability and conservative capital spending by upstream players, according to Zacks Industry Outlook.

NOV Inc., Oil States International, Inc., and Natural Gas Services Group, Inc. are among the companies trying to navigate these challenges.

The Zacks Oil and Gas - Mechanical and Equipment industry has outperformed the broader oil energy sector and the S&P 500 over the past year, rising 40% compared to a 27.3% gain for the sector and a 17.9% gain for the S&P 500.

The industry's valuation is currently lower than the sector's but higher than the S&P 500's, trading at 7.65X EV/EBITDA, down from a high of 26.73X over the past five years.