Back to top

Matrix Service (MTRX) and USA Compression (USAC) are Aggressive Growth Stocks

Read MoreHide Full Article

Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two more stocks for your aggressive growth radar screen. Both of these names are in the oil patch and Brian believes that the price of oil is headed to the century mark and possibly higher. In his video he mentions that two bulge bracket analysts have price targets of $125 and $150. Oil is currently trading about 10% below the century mark, but there are indications that prices could be moving higher.

Matrix Services (MTRX - Free Report) Is the first stock that Brian looks at and he likes it for several reasons. The company has posted a loss in each of the last four quarters and that streak is expected to continue in the current quarter but the end of the fiscal year 2024 the company is looking at a gain of $0.13. The next fiscal year has estimates up to $0.75 per share.

The valuation for Matrix Services (MTRX - Free Report) looks a little out of whack with a forward PE multiple of 87x but when Brian stretches the time horizon out to the next fiscal year end we see that PE multiple drop down to about 15x.  Brian also highlights how the price to book of 1.7x is still low enough to keep value investors interested in a stock like this.

USA Compression (USAC - Free Report) is the next stock that Brian takes a look at and this one is also and oil services play. Brian highlights the chart on this one early in the video and mentions late that the reason for this spike was that the company raised prices by 11.7%. Brian notes that companies with pricing power have great opportunities to increase earnings.

Like MTRX, USA Compression (USAC - Free Report) doesn't exactly have a great earnings history, but estimates continue to move higher. Brian explains in the video that oil companies are priced off of production estimates and an average sell in price of oil over the quarter. So as the price of oil moves higher estimates tend to come along for the ride.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Matrix Service Company (MTRX) - free report >>

USA Compression Partners, LP (USAC) - free report >>

Published in