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Natural Gas Services Group, Inc. (NGS) Hits Fresh High: Is There Still Room to Run?

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A strong stock as of late has been Natural Gas Services (NGS - Free Report) . Shares have been marching higher, with the stock up 11.9% over the past month. The stock hit a new 52-week high of $32.47 in the previous session. Natural Gas Services has gained 20.5% since the start of the year compared to the 10.3% gain for the Zacks Oils-Energy sector and the 16.6% return for the Zacks Oil and Gas - Mechanical and and Equipment industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 10, 2025, Natural Gas Services reported EPS of $0.46 versus consensus estimate of $0.33.

For the current fiscal year, Natural Gas Services is expected to post earnings of $1.62 per share on $170.08 in revenues. This represents a 13.29% change in EPS on a 8.51% change in revenues. For the next fiscal year, the company is expected to earn $2.11 per share on $196.07 in revenues. This represents a year-over-year change of 30.25% and 15.28%, respectively.

Valuation Metrics

Natural Gas Services may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Natural Gas Services has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.2X. On a trailing cash flow basis, the stock currently trades at 8.1X versus its peer group's average of 7.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Natural Gas Services currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Natural Gas Services fits the bill. Thus, it seems as though Natural Gas Services shares could have a bit more room to run in the near term.


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