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Bull Of The Day: Solaris Oilfield Infrastructure

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Solaris Oilfield Infrastructure (SOI - Free Report) is a Zacks Rank #1 (Strong Buy) and has plenty of recent positive earnings estimate revisions.  Let's take a look at those revisions and why this stock made it to a Zacks Rank #1 (Strong Buy) and is the Bull of the Day.

Description

Solaris Oilfield Infrastructure manufactures and sells mobile proppant management systems to unload, store, and deliver proppant at oil and natural gas well sites. The company's systems are designed for transferring large quantities of proppant to the well sites. It also provides real-time inventory management solutions for proppant mining, rail shipping, and transloading operations. SOI was founded in 2014 and is based in Houston, Texas.

Agreement

Part of the foundation of the Zacks Rank is Agreement. This basically means to all the analysts that are covering the stock see the same thing. If they do, then they are in agreement, and this is pretty much the case with SOI as there have been lots of positive revisions over the last 60 days.

Over the last 60 days, I see 4 positive earnings estimate revisions to this quarter and the next quarter as well.  I also see 5 positive earnings estimate revisions to the current year and 5 for next year as well.  That is a lot of positive increases to estimates.

Over that time horizon, the Zacks Consensus Estimate for 2018 has moved from $1.64 to $1.74.  The real move is in the 2019 numbers, which have bumped up from $2.38 to $2.63.

Postive ESP

These revisions are also coming just ahead of an earnings release.  I see the company is slated to report on May 8 and recently one analyst adjusted numbers higher.  The Zacks Earnings ESP shows +6%, which suggests that the more recent estimate is fully 6% ahead of the consensus.  

With just a few weeks before earnings, the analyst was likely very confident this was going to be a good quarter.

Options are pricing in a move of around 10% for this stock (for the options that expire following the earnings print).  With firmness in the price of oil and positive earnings estimate action, investors should take the time to give SOI a deeper drill down.

Chart

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