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    Precision Drilling (TSX:PD) Climbed, So What Is Behind The Move?

    Simply Wall St·10/25/2026 06:30:33
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    Precision Drilling (TSX:PD) moved higher alongside other oil and gas stocks after sustained strength in crude prices supported upstream producers and related services companies on the TSX.

    For context, Precision Drilling’s share price has climbed to CA$131.69, with a 1-day share price return of 3.63% adding to a 30.32% year-to-date share price gain. The 1-year total shareholder return of 58.19% reflects strong recent momentum.

    Scan the rest of the energy patch by checking hand-picked oil and gas drillers and producers with similar momentum in our 9 high quality undiscovered gems

    After a CA$131.69 print and a 58.19% 1-year total return, Precision Drilling now asks a simple question of new money: Does the current valuation still leave enough upside to justify the risks?

    Most Popular Narrative: 13% Undervalued

    On the most followed view, Precision Drilling screens below an estimated fair value of CA$151.11, even after closing at CA$131.69. This puts the spotlight squarely on how margins and balance sheet trends might reshape the story from here.

    Ongoing deleveraging, with debt reduction ahead of schedule and a normalized leverage target under 1x by 2027, strengthens net income and increases flexibility for future capital returns to shareholders via buybacks or dividends.

    See why 18 investors see Precision Drilling as 13% undervalued.

    Result: Fair Value of CA$151.11 (UNDERVALUED)

    Still, the narrative can break if rising capital spending fails to earn adequate returns, or if interest costs on Precision Drilling’s debt keep squeezing earnings.

    Find out about the key risks to this Precision Drilling narrative.

    Next Steps

    Mixed signals so far on Precision Drilling, with strong recent returns sitting alongside clear risk flags. Act quickly, review the underlying data, and weigh both sides for yourself with the 2 key rewards and 1 important warning sign.

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