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Strength Seen in Oceaneering International (OII): Can Its 12.1% Jump Turn into More Strength?

·2 min read

Oceaneering International (OII) shares soared 12.1% in the last trading session to close at $9.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.2% loss over the past four weeks.

Oceaneering International ended sharply higher on the last trading day, driven by optimism over oil prices spurred by curbs on Russia, plus a demand spike owing to the reopening of economies and a rebound in activity. The steady increase in crude prices to over $100 a barrel has lifted the oilfield service space and contributed to the strength in the company.

This oilfield services company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $513.3 million, up 3% 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 6.7% 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 OII 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 >>>>

Oceaneering International is part of the Zacks Oil and Gas - Field Services industry. NexTier Oilfield Solutions (NEX), another stock in the same industry, closed the last trading session 3.5% higher at $9.09. NEX has returned -20.5% in the past month.

For NexTier Oilfield Solutions , the consensus EPS estimate for the upcoming report has changed +29% over the past month to $0.30. This represents a change of +257.9% from what the company reported a year ago. NexTier Oilfield Solutions currently has a Zacks Rank of #2 (Buy).


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