Strength Seen in Oil States International (OIS): Can Its 6.3% Jump Turn into More Strength?
Oil States International (OIS) shares ended the last trading session 6.3% higher at $5.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.4% loss over the past four weeks.
The surge in stock price can be attributed to hedge funds and other institutional investors increasing their positions in Oil States International, with institutional investors collectively owning a significant portion (89.76%) of OIS stock. Additionally, the company's revenue for the fourth quarter increased by 2.9% compared to the same quarter of the previous year. Oil States International is well-positioned to serve various markets, indicating a broad customer base and potential for revenue growth, which further drives the stock price.
This energy services company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $194.46 million, down 0.9% 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 38.5% 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 is part of the Zacks Oil and Gas - Mechanical and and Equipment industry. Natural Gas Services (NGS), another stock in the same industry, closed the last trading session 0.9% lower at $17.59. NGS has returned 16.3% in the past month.
Natural Gas Services' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. Compared to the company's year-ago EPS, this represents a change of +316.7%. Natural Gas Services currently boasts a Zacks Rank of #3 (Hold).
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Oil States International, Inc. (OIS) : Free Stock Analysis Report
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