National Energy Services Reunited (NESR) shares ended the last trading session 10.9% higher at $24.05. 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 3.5% gain over the past four weeks.
The surge can be attributed to National Energy Services Reunited strong foothold in production and drilling & evaluation services, as well as the broader gain on crude prices, which reached nearly $100 per barrel due to the ongoing war in the Middle East. National Energy Services Reunited mainly provides equipment and services to exploration and production companies to extract resources more efficiently. The company has operations spread across Middle East, North Africa and Asia Pacific regions. Escalating tensions in the Middle East and the ongoing war between Iran and the US have caused oil prices to surge, spurred by tightened energy supplies due to the blockage of the Strait of Hormuz.NESR will likely see increased demand due to the urgent need to repair and secure critical infrastructure damaged by conflict. The company’s strong foothold as an oil and gas equipment and service provider in the MENA region, coupled with ongoing war between Iran and the US, has been a significant revenue driver.
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 +85.7%. Revenues are expected to be $381.18 million, up 25.8% 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
National Energy Services Reunited belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, North American Construction (NOA), closed the last trading session 1.6% higher at $14.01. Over the past month, NOA has returned -17.6%.
North American Construction's consensus EPS estimate for the upcoming report has changed -22.2% over the past month to $0.32. Compared to the company's year-ago EPS, this represents a change of -11.1%. North American Construction currently boasts a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).