NCS Multistage (NCSM) Moves 12.8% Higher: Will This Strength Last?

NCS Multistage NCSM shares rallied 12.8% in the last trading session to close at $54.55. 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 25% gain over the past four weeks.

The surge can be attributed to NCS Multistage Holdings’ strong foothold in key well construction and completion technologies, as well as the broader gain on crude prices, which reached nearly $90 per barrel due to the recent geopolitical developments, in the Middle East. NCS Multistage Holdings supplies products and services mainly to exploration and production companies for use in both onshore and offshore wells, across both unconventional and conventional oil and gas formations. NCS has operations spread across the globe including North America, Middle East & Asia, Europe/CIS/Africa and Latin America. With global demand for oil and energy expected to grow, demand for its oilfield equipment and services is likely to strengthen, supporting future earnings. The company’s strong global foothold as an oil and gas equipment and service provider, coupled with rising demand for oil and cleaner energy, has been a significant revenue driver.

This company is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of -1.3%. Revenues are expected to be $51.62 million, up 3.2% 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 NCS Multistage, the consensus EPS estimate for the quarter has been revised 12% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Liberty Oilfield Services (LBRT), closed the last trading session 3.6% higher at $27.76. Over the past month, LBRT has returned 6.2%.

For Liberty Oilfield Services, the consensus EPS estimate for the upcoming report has changed +6% over the past month to -$0.15. This represents a change of -475% from what the company reported a year ago. Liberty Oilfield Services currently has a Zacks Rank of #3 (Hold).

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

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