Oceaneering International (OII) Soars 6.5%: Is Further Upside Left in the Stock?

Oceaneering International (OII) shares rallied 6.5% in the last trading session to close at $30.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.5% gain over the past four weeks.

Oceaneering International’s stock jumped 6.5% as investors reacted to improving sentiment around its subsea robotics and offshore services business, which is seeing stronger demand amid a healthier offshore activity backdrop. Growing interest in the company’s robotics capabilities—especially its expansion into defense and non-energy applications—has reinforced the view that Oceaneering is resilient to volatility of offshore oil and gas sector. This narrative was supported by positive analyst input, raising Oceaneering’s price targets and ratings, signaling confidence in near-term momentum. The market interpreted this combination of rising subsea demand and diversified robotics exposure as a sign of better earnings resilience, driving renewed buying interest in the stock.

This oilfield services company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +18.9%. Revenues are expected to be $711 million, down 0.3% 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 Oceaneering International, 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 OII going forward to see if this recent jump can turn into more strength down the road.

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

Oceaneering International is a member of the Zacks Oil and Gas - Field Services industry. One other stock in the same industry, Tetra Technologies (TTI), finished the last trading session 2.9% higher at $11.92. TTI has returned 23.3% over the past month.

For Tetra Technologies, the consensus EPS estimate for the upcoming report has changed -14.3% over the past month to $0.03. This represents no change from what the company reported a year ago. Tetra Technologies currently has a Zacks Rank of #4 (Sell).

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

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