Oil States International (OIS) Soars 20.9%: Is Further Upside Left in the Stock?
Oil States International (OIS) shares soared 20.9% in the last trading session to close at $7.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.5% loss over the past four weeks.
The recent surge in oil prices on account of geopolitical tensions primarily drove the stock. The price of oil is trading at more than $120-per barrel mark, reflecting a significant improvement in the past year. This is beneficial for Oil States International since the company is a leading provider of a wide range of specialized services for both the completion and production phases of oil wells.
This energy services company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +61.5%. Revenues are expected to be $165.8 million, up 32% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Oil States International, the consensus EPS estimate for the quarter has been revised 17.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on OIS 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 >>>>
Oil States International belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, Pedevco Corp. (PED), closed the last trading session 27% higher at $2.02. Over the past month, PED has returned 31.4%.
For Pedevco Corp. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. This represents a change of +100% from what the company reported a year ago. Pedevco Corp. currently has a Zacks Rank of #3 (Hold).
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