Seeking Alpha: RPC Needs Activity To Pick Up To Sustain The Rally

Many investors are already looking ahead to 2014, and it's probably just a matter of weeks before we start seeing the "stocks to own for 2014" pieces coming out. As it pertains to the energy sector, one of the biggest questions is the extent to which drilling activity will pick up in North America and how much of the excess capacity in areas like pressure pumping will get absorbed into the market.

Given how stocks like RPC (RES), Halliburton (HAL), C & J Energy Services (CJES), and Calfrac (CFW.TO) have been behaving of late, it looks investors are expecting a pretty favorable answer. Although the valuation on RPC isn't so great at this point, I do believe it's a stock worthy of further due diligence. Despite overcapacity in pressure pumping, the company has maintained solid margins and returns in capital, due in part to other service offerings like downhole tools and coiled tubing.

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RPC Needs Activity To Pick Up To Sustain The Rally