Oil Services Is Making a Comeback. 2 Energy Equipment Stocks to Watch.

An oil pump jack is seen in Close City, Texas. (Brandon Bell/Getty Images)

Oil-services stocks are outperforming other energy shares as the sector takes a beating from low energy prices. Technical indicators point to more gains, while increased capital spending in the oil patch is seen as a positive for the companies.

The VanEck Oil Services exchange-traded fund has gained 19% over the past three months versus a 6% gain for the Energy Select Sector SPDR ETF. Both have had a tough time in 2025, with a 2% gain for the broader fund and a 7% loss of the VanEck fund so far in 2025.

The oil-services fund, at $ 251 Wednesday afternoon, is now testing the area around $250 for the third time in recent weeks. The repeated pressure suggests a breakout may be near.

Despite a double gap down in early April that wiped out nearly 25% in two sessions, bulls point to a pattern of higher lows since then as evidence of early recovery signs.

Some names are already showing strong momentum. One standout within the ETF is Valaris, an energy equipment play that benefited from interest from an activist investor earlier in 2025.

The stock has surged 65% over the past three months, showcasing impressive relative strength. A recent breakout above $50—the stock was at $50.77 in afternoon trading—appears to confirm a bullish inverse head and shoulders pattern, setting the stage for a potential move toward $75.

That would bring the stock within striking distance of the a resistance zone near $80, a level that has proven challenging at various times in 2023 and 2024.

Baker Hughes , the second-largest holding in the VanEck Oil Services ETF, offered additional evidence of a potential turnaround in the group, with a strong reaction to earnings on Wednesday afternoon.

By early afternoon, the stock had surged 11% to $44.45, breaking decisively above a bullish ascending triangle pattern as seen on the chart below.

If the move holds, it would mark the stock’s best weekly gain in nine months. Share are now 10% off their 52-week high, far outperforming peers like Schlumberger and Halliburton, which remain 29% and 37% below their respective peaks.

Write to Doug Busch at douglas.busch@barrons.com