Strength Seen in Ranger Energy (RNGR): Can Its 10.0% Jump Turn into More Strength?
Ranger Energy (RNGR) shares rallied 10% in the last trading session to close at $13.74. 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 2.2% gain over the past four weeks.
The bullishness could be attributed to Ranger’s completion exposure which allows for additional earnings in up-cycles while its production focused business provides resiliency and protection in down-cycles. The company’s decommission exposure provides opportunity to pursue fast growing market. RNGR's several successful acquisitions with incremental market share growth over the current year despite rig count drops have been significant drivers of its stock performance.
This company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -13%. Revenues are expected to be $171 million, down 3.4% 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 Ranger Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RNGR 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 >>>>
Ranger Energy is a member of the Zacks Oil and Gas - Field Services industry. One other stock in the same industry, Core Laboratories (CLB), finished the last trading session 0.5% lower at $24.01. CLB has returned 1.8% over the past month.
Core Laboratories' consensus EPS estimate for the upcoming report has changed -5% 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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Ranger Energy Services, Inc. (RNGR) : Free Stock Analysis Report
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