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Tetra Technologies (TTI) Soars 7.2%: Is Further Upside Left in the Stock?

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Tetra Technologies (TTI - Free Report) shares soared 7.2% in the last trading session to close at $6.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% gain over the past four weeks.

The bullishness could be attributed to its second-quarter performance which showcased a remarkable surge in revenue. This surge marks the highest quarterly revenue achievement in TTI's history, excluding any discontinued operations. Also, the net income soared to $18.2 million, showing a remarkable 9-fold increase when compared to the $1.7 million earned during the same period last year. TTI’s margin improvement initiatives have been significant drivers of its stock performance.

This oil and gas services company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $164.1 million, up 21.6% 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 Tetra Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TTI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Tetra Technologies is part of the Zacks Oil and Gas - Field Services industry. Weatherford (WFRD - Free Report) , another stock in the same industry, closed the last trading session 1.2% higher at $95.42. WFRD has returned 8.2% in the past month.

Weatherford's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.31. Compared to the company's year-ago EPS, this represents a change of +227.5%. Weatherford currently boasts a Zacks Rank of #3 (Hold).

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