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SELECT EGY SVCS (WTTR) Stock Jumps 13.4%: Will It Continue to Soar?

·2 min read

SELECT EGY SVCS (WTTR) shares soared 13.4% in the last trading session to close at $6.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.8% gain over the past four weeks.

Select Energy has witnessed a surge in its stock price for three consecutive days. This reflects investors’ strong belief that the leading provider of sustainable water and chemical solutions to the oil and gas industry will be able to sail through the pandemic-induced uncertainty in energy business on a very strong balance sheet. Importantly, through the rest of this year, the company expects its business activities to improve, thanks to steading improving oil demand that is supported by the rolling out of coronavirus vaccines and government’s economic support.

Price and Consensus

Price Consensus Chart for WTTR
Price Consensus Chart for WTTR

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +64.5%. Revenues are expected to be $158 million, up 71.3% 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 SELECT EGY SVCS, the consensus EPS estimate for the quarter has been revised 4.8% 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 WTTR 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 >>>>

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