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Expro Group Holdings (XPRO) Surges 7.6%: Is This an Indication of Further Gains?

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Expro Group Holdings (XPRO) shares ended the last trading session 7.6% higher at $11.21. 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 19% loss over the past four weeks.

Apart from geopolitical uncertainties resulting from Russia’s attack on Ukraine, oil’s remarkable turnaround has been prompted by a demand spike due to the reopening of economies and a rebound in activity. This is beneficial for Expro Group Holdings as higher customer activity levels led to increased well construction services, thereby contributing to its cash flow generation.

This oil and gas pipe provider is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +150%. Revenues are expected to be $306.45 million, up 184.2% 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 Expro Group Holdings, the consensus EPS estimate for the quarter has been revised 27.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on XPRO 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 >>>>

Expro Group Holdings is a member of the Zacks Oil and Gas - Production and Pipelines industry. One other stock in the same industry, Holly Energy Partners, L.P. (HEP), finished the last trading session 2.9% lower at $15.86. HEP has returned -4.9% over the past month.

For Holly Energy Partners, L.P. , the consensus EPS estimate for the upcoming report has changed +1% over the past month to $0.50. This represents a change of +4.2% from what the company reported a year ago. Holly Energy Partners, L.P. currently has a Zacks Rank of #3 (Hold).

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