Strength Seen in Liberty Oilfield Services (LBRT): Can Its 7.6% Jump Turn into More Strength?
Liberty Oilfield Services (LBRT) shares rallied 7.6% in the last trading session to close at $17.77. 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 0.1% gain over the past four weeks.
Liberty Oilfield Services stock rose for the third straight day, as investors cheered the news that Saudi Arabia and Russia had extended their voluntary oil production cuts to the end of the year. The rally was driven by optimism that the extended cuts would help to support oil prices, which have been rising in recent months. The rally in commodity prices to more than $86 a barrel is set to boost drilling activity, which will benefit Liberty Oilfield Services. The company provides a variety of services to oil and gas producers, including hydraulic fracturing, well completion, and well servicing. This provider of hydraulic fracturing services is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -6.4%. Revenues are expected to be $1.13 billion, down 5.1% 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 Liberty Oilfield Services, the consensus EPS estimate for the quarter has been revised 2.1% 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 LBRT 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 >>>>
Liberty Oilfield Services belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Core Laboratories (CLB), closed the last trading session 1.9% lower at $24.46. Over the past month, CLB has returned -0.1%.
Core Laboratories' consensus EPS estimate for the upcoming report has changed +5.3% over the past month to $0.24. Compared to the company's year-ago EPS, this represents a change of +33.3%. Core Laboratories currently boasts a Zacks Rank of #2 (Buy).
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