Precision Drilling Corp

Precision Drilling Corp ( PDS - Snapshot Report ) recently surged to a new multi-year high after its Q2 results showed big gains from last year. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock has the right tools for momentum.

Company Description

Precisions Drilling Corp., through its subsidiaries, provides onshore well drilling and completion services in North America and internationally. The company was founded in 1951 and has a market cap of $4.97 billion.

Energy service companies have been hot for the last few months, supported by strong demand on higher crude prices and increased shale exploration. That dynamic showed up on July 22 when PDS reported solid Q2 results that included a big gain in earnings from last year.

Second-Quarter Results

Revenue for the period was up 32% from last year to $345 million. Earnings also showed big gains, climbing from a loss of 25 cents last year to 6 cents. The Zacks Consensus Estimate was calling for 7 cents, a small miss on high expectations.

The company noted that it continues to see strong demand in both Canada and the United States while utilization and day rates remain on the upswing.

Estimates

We saw some pretty bullish movement in estimates off the good quarter, with the current year adding 6 cents to 94 cents while the next-year estimate gained 5 cents to $1.22, a bullish 29% growth projection.

Valuation

But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of .65 well below the benchmark of 1 for value.

12-Month Chart

On the chart, PDS jumped into a new multi-year high on the good quarter. Look for support from the trend line on any weakness. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.