Don't Forget About Diamond Offshore And The Oil Services ETF
Lost in the spate of major earnings announcements today was a bullish report from Diamond Offhsore (NYSE: DO). Diamond Offshore's quarterly earnings climbed to $364.1 million, or $2.62 per share, from $310.5 million, or $2.23 per share, during the same period last year. That blew away the average analyst estimate of $2.30 a share. Revenues were up 1% to $908.4 million.
If you want a stock that is intimately tied to the price of crude oil, look no further than Diamond Offhsore and if you want an ETF that does the same, look no further than the Oil Services HOLDRs (NYSE: OIH).
OIH is one of the ETF Professor's favorite ETFs and as the chart below shows, there has been good reason to be long this ETF. OIH holds Diamond Offshore and other oil services names like Halliburton (NYSE: HAL), Schlumberger (NYSE: SLB) and Transocean (NYSE: RIG). If oil is going higher, so is OIH.
