ProFrac Holding Corp. (ACDC) shares ended the last trading session 8.2% higher at $6.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 21.3% gain over the past four weeks.
The surge can be attributed to ProFrac Holding’s strong foothold in premium techniques and technology serving the energy industry, as well as the broader gain on crude prices, which reached nearly $90 per barrel due to the recent geopolitical developments, in the Middle East. ProFrac Holding supplies technology and solutions mainly to exploration and production companies to extract resources more efficiently and cost-effectively using advanced fracking technology and services.
ACDC offer a broad range of solutions including project design, manufacturing, sand and chemical supply, logistics, data reporting, automation and emissions reduction to the North American energy industry. Moreover, ProFrac’s well stimulation services are centered around key basins like the Permian, Eagle Ford, Haynesville, Appalachia, the Bakken and the Rockies, supporting future earnings growth. With global demand for oil and energy expected to grow, the company is expected to witness sustained demand for its oilfield equipment and services, supporting future earnings. The company’s strong foothold as an oil and gas equipment and service provider, coupled with rising demand for oil and cleaner energy, has been a significant revenue driver.
This company is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -272.7%. Revenues are expected to be $404.82 million, down 32.6% 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 ProFrac Holding Corp., 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 ACDC 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 >>>>
ProFrac Holding Corp. is part of the Zacks Oil and Gas - Field Services industry. FMC Technologies (FTI), another stock in the same industry, closed the last trading session 3.2% higher at $70.16. FTI has returned 5.8% in the past month.
For FMC Technologies, the consensus EPS estimate for the upcoming report has changed +4.5% over the past month to $0.56. This represents a change of +69.7% from what the company reported a year ago. FMC Technologies currently has a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).