Cactus, Inc. (WHD Quick QuoteWHD - Free Report) shares rallied 6.7% in the last trading session to close at $39.24. 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 14.9% gain over the past four weeks.

Cactus has seen a five-consecutive-day stretch of price increase on increased optimism over the accelerated recovery in the energy sector following the massive improvement in oil prices. With more explorers returning to onshore resources following crude price recovery, the demand for the company’s highly engineered wellhead and pressure control equipment is increasing. Moreover, Cactus can rely on its strong balance sheet, which is free of debt, which will help it sail through the pandemic uncertainty.

Price and Consensus

This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $102.5 million, up 54% 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 Cactus, Inc., the consensus EPS estimate for the quarter has been revised 12.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WHD 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 >>>>