Precision Drilling (PDS) Stock Jumps 6.2%: Will It Continue to Soar?
Precision Drilling (PDS) shares soared 6.2% in the last trading session to close at $65.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 36.1% gain over the past four weeks.
Precision Drilling stock rose for the second straight day, driven by optimism over crude prices spurred by a supportive macro backdrop, geopolitical tensions and the OPEC+ supply curtailments. The steady increase in commodity prices to more than $100 a barrel has lifted the contract drilling space and contributed to the strength in the company.
This oilfield services company is expected to post quarterly loss of $0.66 per share in its upcoming report, which represents a year-over-year change of +69%. Revenues are expected to be $258.12 million, up 38.2% 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 Precision Drilling, the consensus EPS estimate for the quarter has been revised 17.9% 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 PDS 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 >>>>
Precision Drilling belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Transocean (RIG), closed the last trading session 1.4% higher at $5.02. Over the past month, RIG has returned 33.8%.
Transocean's consensus EPS estimate for the upcoming report has changed -14.8% over the past month to -$0.21. Compared to the company's year-ago EPS, this represents a change of -10.5%. Transocean currently boasts a Zacks Rank of #3 (Hold).
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