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Select Energy Services (WTTR) Soars 13.0%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2 min read

Select Energy Services (WTTR) shares rallied 13% in the last trading session to close at $6.33. 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 31.7% loss over the past four weeks.

Select Energy Services’ shares rallied on the last trading day. The bullishness could be attributed to the sustained high oil and gas prices which is encouraging customers to increase drilling activities. This has increased demand for the company’s drilling and completion activities. With the strong demand for its services, Select Energy Services is well positioned to generate record-breaking free cash flows this year.

This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +1200%. Revenues are expected to be $415.23 million, up 40.9% 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.

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For Select Energy Services, the consensus EPS estimate for the quarter has been revised 15.4% 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 >>>>

Select Energy Services belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Helix Energy (HLX), closed the last trading session 4.5% higher at $7.63. Over the past month, HLX has returned -4.2%.

Helix Energy's consensus EPS estimate for the upcoming report has changed -16.7% over the past month to $0.03. Compared to the company's year-ago EPS, this represents a change of +110.7%. Helix Energy currently boasts a Zacks Rank of #2 (Buy).

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Select Energy Services (WTTR) : Free Stock Analysis Report

Helix Energy Solutions Group, Inc. (HLX) : Free Stock Analysis Report

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Zacks Investment Research