NCS Multistage (NCSM) Surges 5.2%: Is This an Indication of Further Gains?

NCS Multistage (NCSM) shares soared 5.2% in the last trading session to close at $44.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks.

NCS Multistage’s shares rallied on the last trading day. The bullishness could be attributed to the company’s acquisition of ResMetrics, a leader in chemical tracer diagnostics. The move strengthens NCS’s position in well performance optimization and expands its global reach. This strategic deal signals confidence in sustained growth, enhancing its technology edge and margins, suggesting potential for further upside momentum.

This company is expected to post quarterly earnings of $1.17 per share in its upcoming report, which represents a year-over-year change of -22%. Revenues are expected to be $46.1 million, up 4.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For NCS Multistage, 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 NCSM 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 >>>>

NCS Multistage is part of the Zacks Oil and Gas - Field Services industry. Liberty Oilfield Services (LBRT), another stock in the same industry, closed the last trading session 1.4% higher at $13.09. LBRT has returned 23.2% in the past month.

For Liberty Oilfield Services, the consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $0.01. This represents a change of -97.8% from what the company reported a year ago. Liberty Oilfield Services currently has a Zacks Rank of #4 (Sell).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research