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Nine Energy Service (NINE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Nine Energy Service (NINE - Free Report) closed at $10.92, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.

Coming into today, shares of the oilfield services company had lost 32.36% in the past month. In that same time, the Oils-Energy sector gained 3.79%, while the S&P 500 gained 4.49%.

Wall Street will be looking for positivity from Nine Energy Service as it approaches its next earnings report date. This is expected to be March 8, 2023. In that report, analysts expect Nine Energy Service to post earnings of $0.34 per share. This would mark year-over-year growth of 165.38%. Meanwhile, our latest consensus estimate is calling for revenue of $166.3 million, up 58.25% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Nine Energy Service. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 40.18% lower within the past month. Nine Energy Service currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Nine Energy Service currently has a Forward P/E ratio of 8.25. Its industry sports an average Forward P/E of 13.61, so we one might conclude that Nine Energy Service is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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