TechnipFMC (FTI) Moves 12.9% Higher: Will This Strength Last?

FMC Technologies (FTI) shares soared 12.9% in the last trading session to close at $26.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.4% loss over the past four weeks.

TechnipFMC is a global oilfield services company providing technology solutions for subsea, offshore, and onshore oil and natural gas projects. The company’s stock increased due to the market rally driven by President Trump's tariff policy announcement. By pausing tariff hikes and introducing a lower 10% tariff for most countries, oil and natural gas prices surged, benefiting companies like TechnipFMC, which relies on a healthy energy market for its services. The reduction in trade tensions helped improve investor sentiment in the energy sector, directly influencing TechnipFMC's stock price.

This provider of equipment and services to energy companies is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +68.2%. Revenues are expected to be $2.25 billion, up 10.4% 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 FMC Technologies, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FTI 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 >>>>

FMC Technologies is part of the Zacks Oil and Gas - Field Services industry. Weatherford (WFRD), another stock in the same industry, closed the last trading session 17.3% higher at $45.93. WFRD has returned -25.1% in the past month.

For Weatherford

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

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