Shares of Oceaneering International (OII) have been strong performers lately, with the stock up 27.2% over the past month. The stock hit a new 52-week high of $36.41 in the previous session. Oceaneering International has gained 50.6% since the start of the year compared to the 20.1% gain for the Zacks Oils-Energy sector and the 33.6% return for the Zacks Oil and Gas - Field Services industry.
What's Driving the Outperformance?
The stock has a great 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 February 18, 2026, Oceaneering International reported EPS of $0.45 versus consensus estimate of $0.44.
For the current fiscal year, Oceaneering International is expected to post earnings of $1.86 per share on $2.66 in revenues. This represents a -3.63% change in EPS on a -4.39% change in revenues. For the next fiscal year, the company is expected to earn $1.97 per share on $2.69 in revenues. This represents a year-over-year change of 5.91% and 1.03%, respectively.
Valuation Metrics
Oceaneering International 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 is due for a pullback from this level.
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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.
Oceaneering International has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 19.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.5X. On a trailing cash flow basis, the stock currently trades at 16.6X versus its peer group's average of 8.8X. 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 consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Oceaneering International currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Oceaneering International meets the list of requirements. Thus, it seems as though Oceaneering International shares could have potential in the weeks and months to come.
How Does OII Stack Up to the Competition?
Shares of OII have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is TechnipFMC plc (FTI). FTI has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. TechnipFMC plc beat our consensus estimate by 37.25%, and for the current fiscal year, FTI is expected to post earnings of $2.74 per share on revenue of $10.62 billion.
Shares of TechnipFMC plc have gained 14.4% over the past month, and currently trade at a forward P/E of 22.51X and a P/CF of 17.01X.
The Oil and Gas - Field Services industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for OII and FTI, even beyond their own solid fundamental situation.
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Oceaneering International, Inc. (OII): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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