Earnings season is a critical time for most companies in the market, but Q1 EPS is likely not particularly important for oil services investors. According to UBS analyst Angie Sedita, it’s no secret that Q1 oil earnings will be terrible, but the investment thesis for oil services stocks is all about the future.

UBS is calling for Q1 earnings to be “challenging” in the oil services space, and she expects things to get even worse in Q2 before bottoming in Q3 of this year.

Sedita believes that the rally in oil services stocks is only 30–40 percent completed at this point, but it may have become overheated in the short-term.

“We view any sell-off in the sector as a more attractive buying opportunity and believe most investors are underweight and still looking to get in,” she explained.

She added…

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