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NCS Multistage (NCSM) Surges 13.4%: Is This an Indication of Further Gains?

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NCS Multistage (NCSM - Free Report) shares rallied 13.4% in the last trading session to close at $28. 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 21.5% loss over the past four weeks.

NCS Multistage has witnessed a rally in its stock price despite the energy market dealing with coronavirus-induced uncertainties. This reflects strong investor belief that the company, a leading provider of highly engineered products and support services to the oil and gas industry, will be able to sail through the uncertainties on balance sheet strength. Late last month, Piper Sandler analyst Ian Macpherson raised the stock’s price target.

Price and Consensus

Price Consensus Chart for NCSM

This company is expected to post quarterly loss of $1.23 per share in its upcoming report, which represents a year-over-year change of -515%. Revenues are expected to be $28 million, down 48.7% 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 NCS Multistage, the consensus EPS estimate for the quarter has been revised 17.6% 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 NCSM 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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