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Unit (UNT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Unit (UNT) closed at $17.32 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.

Prior to today's trading, shares of the oil and natural gas contract drilling company had lost 4.58% over the past month. This has lagged the Oils-Energy sector's gain of 1.97% and the S&P 500's loss of 1.4% in that time.

Wall Street will be looking for positivity from UNT as it approaches its next earnings report date. This is expected to be February 28, 2019. In that report, analysts expect UNT to post earnings of $0.27 per share. This would mark year-over-year growth of 22.73%. Our most recent consensus estimate is calling for quarterly revenue of $216.85 million, up 5.86% from the year-ago period.

Investors should also note any recent changes to analyst estimates for UNT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 12.11% higher. UNT currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, UNT is holding a Forward P/E ratio of 9.66. Its industry sports an average Forward P/E of 16.66, so we one might conclude that UNT is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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