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Oil shocks in 2026 — after President Trump declared an "energy emergency" in January and the U.S.-Iran war triggered an oil supply disruption in March — boosted oil equipment maker TechnipFMCFTI. Meanwhile, an acceleration in earnings growth brought additional conviction in the energy name and shares rallied to their all-time high in April before forming a base.
IBD MarketSurge shows base patterns on both the daily and weekly charts with the same buy point of 77.78, making TechnipFMC Wednesday's pick for IBD 50 Stocks To Watch. Year-to-date gains tally up to more than 60% based on Tuesday's closing price.
The daily chart shows a second-stage cup base while a clear consolidation base appears on the weekly sketch — also a second-stage formation.
Second-quarter results are due on July 30. FactSet-polled analysts are targeting per-share earnings of 80 cents on sales of $2.7 billion.
TechnipFMC provides tools and field planning services for subsea, or offshore, energy production. It also has a much smaller onshore business segment and provides wellheads, drilling and other equipment for that energy market.
While commodity prices may not directly affect the company's profits, uncertainty over oil supply could help it win more contracts, especially for subsea activity. TechnipFMC announced new subsea contracts from EquinorEQNR in Norway and EniE in the Ivory Coast in July.
Energy Stock: Accelerating Earnings Growth
Earnings growth accelerated for the second continuous quarter for the three months ended March 31, giving the stock a nearly ideal Earnings Per Share Rating of 97.
Subsea sales in the first quarter came in at $1.9 billion. In the company's earnings release, Chief Executive Doug Pferdehirt expressed confidence in achieving "$10 billion of Subsea orders in 2026" as the Middle East conflict builds "further momentum in the ongoing shift in capital flows toward offshore developments."
The company announced a backlog of $15.8 billion at the end of the first quarter with Jefferies analysts anticipating full-year backlog of $16.5 billion. Analysts at Jefferies also have a buy rating with a price target of 85 for the energy name.
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TechnipFMC has a Composite Rating of 94. Shares have outperformed 83% of other stocks in the Investor's Business Daily database.
TechnipFMC Ranks First In Group
The stock ranks first in the oil & gas machinery/equipment group, according to IBD Stock Checkup. The sector holds 70th place among IBD's 142 industry groups.
TechnipFMC was created after a merger between FMC Technologies and Technip in 2016. Mutual funds own 65% of outstanding shares of TechnipFMC stock. Further, an increasing number of funds bought shares over the past seven quarters.
The T. Rowe Price New Horizons Fund (PRNHX), the Fidelity Contrafund (FCNTX) and the Invesco Discovery Fund (OPOCX) own shares of Technip FMC stock. Also, all three funds are in the IBD mutual fund index.
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Institutional purchases as tracked by price and volume metrics have been low over the most recent 13 weeks, giving the stock an Accumulation/Distribution Rating of D. However, the Up/Down Volume Ratio of 1.6 shows that demand has been running strong over the past 50 days.
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