Oceaneering International (OII) Soars 13.1%: Is Further Upside Left in the Stock?
Oceaneering International (OII) shares soared 13.1% in the last trading session to close at $21.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% gain over the past four weeks.
Oceaneering International ended sharply higher on the last trading day, driven by optimism over oil prices spurred by Saudi Arabia’s pledge to extend its current 1 million barrel per day production cut through August. With the steady increase in crude prices to nearly $75 a barrel, major energy companies are expected to ramp up their spending that in turn should translate into more work for the oilfield service firms like Oceaneering International.
This oilfield services company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +328.6%. Revenues are expected to be $601.86 million, up 14.9% 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 Oceaneering International, the consensus EPS estimate for the quarter has been revised 6.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on OII 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 >>>>
Oceaneering International is part of the Zacks Oil and Gas - Field Services industry. Core Laboratories (CLB), another stock in the same industry, closed the last trading session 11.9% higher at $24.24. CLB has returned -17.3% in the past month.
Core Laboratories' consensus EPS estimate for the upcoming report has changed +10.5% over the past month to $0.21. Compared to the company's year-ago EPS, this represents a change of +75%. Core Laboratories currently boasts a Zacks Rank of #4 (Sell).
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Oceaneering International, Inc. (OII) : Free Stock Analysis Report
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