Atlas Energy Solutions Inc. (AESI) Surges 9.8%: Is This an Indication of Further Gains?

Atlas Energy Solutions Inc. (AESI) shares rallied 9.8% in the last trading session to close at $13.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.2% loss over the past four weeks.

The surge can be attributed to Atlas Energy Solutions’ strong foothold in proppant and logistics services in the Permian Basin 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. Atlas provides technology to upstream companies to monitor, plan, and deliver materials automatically, saving time, reducing errors, and improving efficiency at oilfield sites. Tools like Opti Ordering and Opti Dispatch make the whole process faster, smarter, and more efficient than competitors. 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 energy, has been a significant revenue driver.

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -325%. Revenues are expected to be $257.32 million, down 13.5% 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 Atlas Energy Solutions Inc., 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 AESI 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 >>>>

Atlas Energy Solutions Inc. belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Occidental Petroleum (OXY), closed the last trading session 0.8% higher at $55.83. Over the past month, OXY has returned -4.1%.

For Occidental, the consensus EPS estimate for the upcoming report has changed +115% over the past month to $0.54. This represents a change of -37.9% from what the company reported a year ago. Occidental currently has a Zacks Rank of #1 (Strong Buy).

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

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