ChampionX (CHX) Outpaces Stock Market Gains: What You Should Know

·3 min read

In the latest trading session, ChampionX (CHX) closed at $24.83, marking a +0.98% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.

Heading into today, shares of the oil and gas drilling technology company had lost 18.39% over the past month, lagging the Construction sector's loss of 3.31% and the S&P 500's loss of 1.48% in that time.

Wall Street will be looking for positivity from ChampionX as it approaches its next earnings report date. The company is expected to report EPS of $0.36, up 63.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $971.2 million, up 12.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $4.08 billion. These totals would mark changes of +41.27% and +7.1%, respectively, from last year.

Any recent changes to analyst estimates for ChampionX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ChampionX currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ChampionX is currently trading at a Forward P/E ratio of 13.79. This valuation marks a discount compared to its industry's average Forward P/E of 17.9.

It is also worth noting that CHX currently has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.02 based on yesterday's closing prices.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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