RPC (RES) Beat Expectations, Is The Stock Still Cheap?

What RPC’s Latest Quarter Tells You

RPC (RES) drew fresh attention after second quarter 2026 results outpaced market revenue expectations and the company lifted its capital spending outlook, while also reaffirming a regular quarterly cash dividend.

Management pointed to stronger Technical Services performance, improved job mix, and contributions from advanced downhole tools and coiled tubing investments as key supports for the quarter, even as some other service lines softened.

See our latest analysis for RPC.

At a share price of $5.61, RPC has seen its momentum cool in recent months, with a 90 day share price return that declined 26.38%, even though the 1 year total shareholder return of 29.20% and 5 year total shareholder return of 55.99% remain positive.

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For RPC, a 26% slide over 90 days after a stronger quarter and higher capital spending plan raises a simple question: Is the stock now tracking business reality or a swing in sentiment that has gone too far?

Most Popular Narrative: 14.2% Undervalued

RPC last closed at $5.61 compared with a narrative fair value of $6.54, which frames the recent pullback as a valuation gap that some investors are watching closely.

RPC's rapid adoption and expansion of technologically advanced tools (such as the new A10 downhole motor, UnPlug technology, and the largest U.S. coiled tubing unit) positions the company to capitalize on increased digitalization and automation in oilfield operations, likely driving higher differentiation, improved operating efficiency, and potential margin expansion.

RPC's strong balance sheet and cash position provide substantial flexibility to pursue opportunistic M&A and asset upgrades during periods of industry weakness, enabling accretive growth in earnings per share and supporting long-term shareholder returns through the cycle.

Read the complete narrative.

Want to see what sits behind that fair value for RPC? The most followed narrative leans heavily on earnings acceleration, margin rebuild and a future earnings multiple that looks more ambitious than today. Curious which specific growth and profitability assumptions need to line up to support that $6.54 figure.

Result: Fair Value of $6.54 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the bullish RPC story can fray quickly if pricing pressure in pressure pumping and wireline deepens or if heavier capital spending compresses free cash flow.

Find out about the key risks to this RPC narrative.

Another View on RPC’s Valuation

While the narrative fair value marks RPC as 14.2% undervalued at $6.54, a second lens tells a different story. On a P/E of 56.4x, RPC trades richer than the US Energy Services industry at 25.4x and above its own fair ratio of 36.5x. Is this optimism or valuation risk?

For investors who prefer to anchor decisions on earnings multiples, it can help to see how that current P/E compares with peers and with the fair ratio that the market could move toward over time, then decide what margin of safety feels acceptable before taking a view. See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mixed tone on RPC leaves you undecided, it makes sense to move quickly, review the underlying numbers, and weigh both sides of the story through the 2 key rewards and 3 important warning signs

Looking For More Investment Ideas Beyond RPC?

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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.

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