One Energy Stock Quietly Benefiting From The Trump Trade

Some energy stocks have taken a beating this year, but that’s exactly why companies like Ranger Energy Services (NYSE: RNGR), which has a Zen Rating of A (Strong Buy) based on our proprietary 115-factor review, might be worth a closer look.

Right now, energy service stocks in particular are dirt cheap … and sentiment around oil is about as bad as it gets. 

It’s just when things look this bleak that the stage is often set for a major turnaround.

Oil Sentiment Is in the Basement—And That’s a Good Thing

Let’s start with this: hedge funds have never been more bearish on oil. They're betting big that oil prices will keep falling. Overall, they’ve reached a record net short position (red):

Source: oilprice.com

But history tells us that when everyone is this negative, it’s often a great time to fade it and go the other way. 

Remember when oil prices went negative during the COVID crash? That turned out to be an incredible buying opportunity.

It’s no wonder our Sentiment rating for RNGR gives the stock an A.

If even a small catalyst—like increased demand or OPEC cuts—flips the narrative, it could send prices (and stocks like RNGR) soaring. This is the kind of setup that gets contrarian investors excited.

The Drill Baby Drill Factor

Now, add in some political tailwinds. 

Newly-elected Trump is all about ramping up domestic energy production with his "drill baby drill" policies. 

Plus, his Treasury pick, Scott Bessent, is known to favor more U.S. energy output. That’s music to the ears of companies like RNGR, which thrive when drilling activity picks up.

Because the thing is … even if oil prices trade flat or slight down, RNGR can still benefit. 

They’re an energy services company, which means they make money by helping others drill, maintain wells, and process natural gas. As long as exploration and production (E&P) activity increases, RNGR can ride the wave.

Why RNGR Stands Out

RNGR isn’t your typical oil company—it’s in the business of making drilling more efficient and keeping wells running smoothly. 

Here’s why they’re built for success:

• High-Spec Rigs: RNGR’s fleet of over 400 rigs handles everything from well maintenance to major interventions. This is the bread-and-butter work that happens no matter where oil prices go.
• Wireline Services: Industry jargon term, but basically, RNGR’s tech helps oil companies maximize production and troubleshoot problems.
• Processing Solutions: With natural gas demand rising (partly due to the AI boom), RNGR’s equipment helps clean and stabilize gas for use. This part of their business could become even more important over time.

The company is also cheap on a price-to-book basis:

RNGR is good value based on its book value relative to its share price (1.4x), compared to the US Oil & Gas Equipment & Services industry average (2.5x).

Plus, it’s earned a B rating for its Momentum, Growth, and Financials. 

See RNGR’s other component ratings here.

Speaking of momentum, things are also looking good for RNGR from a technical perspective, as it’s broken the neckline (blue) of its inverse head and shoulders pattern (yellow):

Overall? RNGR has an A Zen Rating, and is worth keeping on your radar, especially if you’re looking for a contrarian bet on energy. Research RNGR here.

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