3 Oil Services Stocks to Buy Now If you are interested in one of the best ways to play this trend, check out our list of 3 oil services stocks to buy now

The oil and gas industry has been dealing with monumental challenges since the onset of the pandemic. As global energy demand saw unprecedented declines and the clean energy narrative picked up steam, many investors headed for the exit doors in some of the historically best-performing oil stocks. With that said, it seems as though the rumors of the oil industry's demise have been overstated for now, as oil prices have rebounded sharply in 2021.

Brent topped $72 a barrel for the first time since 2019 on Friday, which is a great sign for companies involved in providing the equipment and technology needed in the oil & gas industry worldwide. While many of these companies still face long-term challenges, there's a good chance that the rally in oil prices has room to run in the coming months as the world continues to reopen. If you are interested in one of the best ways to play this trend, check out our list of 3 oil services stocks to buy now below.

Schlumberger NV (NYSE:SLB)

This is a global provider of oilfield services to the energy industry that recently delivered positive news after the company's announcement that its 2021 estimated revenues would top $22.5 billion, which is above the consensus analyst estimate. As a major provider of the technology needed for reservoir characterization, drilling, production, and processing to the oil and gas industry, Schlumberger plays a key role in supplying the products needed to keep end-to-end upstream operations running at full steam. It's also worth noting that the company has a strong international business that has quickly stabilized, which could lead to a nice rebound in earnings for the rest of the year.

To quote CEO Olivier Le Peuch, "With oil demand projected to reach pre-2019 levels by the end of 2022 and supply tightening, our oil and gas business is on the verge of an exceptional growth cycle,". This is exactly the type of statement that investors should be excited about, and the fact that Schlumberger reported operating results that were much better than expected in Q1 could be a sign of good things to come.

Halliburton Company (NYSE:HAL)

Next, we have Halliburton, the world's second-largest oilfield services company and a great option for investors that are interested in stocks that should benefit from rising oil and gas prices. Halliburton operates in two segments, the completion and production segment and the drilling and evaluation segment. This company helps oil and gas companies around the world with locating new drill sites, wellbore engineering, and optimizing well construction activities. As the demand for oil continues to improve, oil and gas companies will be more willing to increase their spending, which plays exactly into Halliburton's favor.

The company reported a sequential revenue increase of 7% in Q1, which is certainly a step in the right direction. It's also worth noting that the company's operating margins are still above pre-pandemic levels, which is a testament to how skillfully the company navigated one of the more challenging times for the industry in recent memory. The bottom line here is that Halliburton is one of the premier oil services stocks to buy now given its operating efficiency and the potential for a rebound in the North American oil industry.

Baker Hughes Co (NYSE:BKR)

If you are interested in an oil services company that has growth opportunities outside of traditional oil drilling, Baker Hughes is a strong pick. With exposure to hydrogen, liquefied natural gas, carbon capture, and more, which are all growing areas that have huge addressable markets, Baker Hughes has a longer-term energy transition strategy that could pay off in a big way. The company also provides oilfield products, services, and digital solutions to oil & gas companies around the world and was formed from the merger of Baker Hughes Inc. and GE's oil and gas business back in 2017.

Income investors should be attracted to this stock thanks to its 2.78% dividend yield, which is the highest dividend yield out of the oil services stocks mentioned in this article. It's also worth mentioning that since Baker Hughes has access to GE Digital, it might be able to leverage Big Data and the Internet of Things to benefit the oil and gas industry. The stock has rallied 15% in the past month and could be in for more upside as long as oil and gas prices are rising.

Featured Article: What Is Dividend Yield and How Do You Calculate It?