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Patterson-UTI (PTEN) Moves 10.9% Higher: Will This Strength Last?
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Patterson-UTI (PTEN - Free Report) shares soared 10.9% in the last trading session to close at $9.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18% gain over the past four weeks.
Patterson-UTI Energy stock rose for the sixth time in eight days, driven by improving outlook for the industry. In a presentation yesterday, oilfield service biggie Schlumberger (SLB - Free Report) painted an optimistic picture of the energy sector, asserting the strong fundamentals and an imminent growth cycle. As it is, the rally in crude prices to a multi-year high of around $68 a barrel on the back of calibrated OPEC+ cuts and an upbeat demand forecast has lifted the onshore contract drilling space and contributed to the strength in the company.
Price and Consensus
This provider of onshore contract drilling services is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $290.22 million, up 15.9% 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 Patterson-UTI, the consensus EPS estimate for the quarter has been revised 0.9% 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 PTEN going forward to see if this recent jump can turn into more strength down the road.
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Patterson-UTI (PTEN) Moves 10.9% Higher: Will This Strength Last?
Patterson-UTI (PTEN - Free Report) shares soared 10.9% in the last trading session to close at $9.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18% gain over the past four weeks.
Patterson-UTI Energy stock rose for the sixth time in eight days, driven by improving outlook for the industry. In a presentation yesterday, oilfield service biggie Schlumberger (SLB - Free Report) painted an optimistic picture of the energy sector, asserting the strong fundamentals and an imminent growth cycle. As it is, the rally in crude prices to a multi-year high of around $68 a barrel on the back of calibrated OPEC+ cuts and an upbeat demand forecast has lifted the onshore contract drilling space and contributed to the strength in the company.
Price and Consensus
This provider of onshore contract drilling services is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $290.22 million, up 15.9% 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 Patterson-UTI, the consensus EPS estimate for the quarter has been revised 0.9% 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 PTEN 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 >>>>