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Complete Production Services

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Complete Production Services (CPX) has some explosive growth potential, with earnings expected to triple over the next 2 years.

Shares are trading with attractive valuations and this Zacks #1 Rank (Strong Buy) has a good earnings track record.

Company Description

Complete Production is an oilfield service provider focusing on the completion and production phases for oil and gas wells.

Top Line Swells

The last quarterly report came back in April and showed a 605% increase in the top line, to $495 million. That jump was in the face of poor weather conditions in Texas, Oklahoma and North Dakota, which slowed activity.

Net income was at $38.9 million, up from a loss in the same period a year ago. Earnings broke down to $0.50 per share, with matched the Zacks Consensus Estimate. Complete Production had topped estimates in 5 of the past 6 quarters prior to meeting expectations.

Analysts are Optimistic

After the quarterly report the full-year estimates started climbing once again. The Zacks Consensus Estimate for this year rose 17 cents, to $2.70.

Next year's is up 50 cents, to $3.31. Based on the $1.08 per share the company made last year, the projected growth rates are now 150% this year and another 23% in 2012.

The Price is Right

Shares of CPX are trading at just 11 times forward estimates, which puts the PEG around 0.7. The price to sales comes in at 1.4, which looks average on the surface, but is actually the best in the peer group.

The Chart

The long-term earnings trend looks great. Below is chart that plots the consensus estimates for the past 5 years. You can that not only are estimates higher year over year right now, but they also have a tendency to rise throughout the year.

Complete Production Services  - ticker CPX>

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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