National Energy Services Reunited (NESR) Moves 8.2% Higher: Will This Strength Last?

National Energy Services Reunited (NESR) shares soared 8.2% in the last trading session to close at $19.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.7% gain over the past four weeks.

The surge reflects stronger demand for NESR’s oilfield services amid rising global oil and gas demand. As a leading provider in the MENA region, NESR is benefiting from increased drilling activity and growth in unconventional resources. While U.S. drilling has softened, the company expects growth in Latin America—particularly Guyana and Brazil—and across MENA markets such as Algeria, Libya, the UAE, Oman, and Kuwait. A strong backlog and project pipeline are likely to support sustained demand, profitability, and revenue growth.

This company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $374.05 million, up 8.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For National Energy Services Reunited, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NESR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

National Energy Services Reunited is part of the Zacks Oil and Gas - Mechanical and and Equipment industry. Natural Gas Services (NGS), another stock in the same industry, closed the last trading session 1.9% higher at $34.63. NGS has returned 2.6% in the past month.

Natural Gas Services' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of +27.6%. Natural Gas Services currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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