KLX Energy Services (KLXE) shares soared 7.4% in the last trading session to close at $5.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% gain over the past four weeks.
The bullishness could be attributed to a higher demand for KLX Energy’s oilfield services due to favorable oil and gas prices. Moreover, its wide range of downhole tools and services caters to diverse needs across all well phases while reducing costs, strengthens its position in the competitive oilfield services market and drives revenue growth. KLX Energy’s ability to tackle land-based, offshore, and international well control challenges leads it to bag lucrative projects, bolstering its financial performance and overall profitability. KLX Energy’s focus on comprehensive, innovative, and client-focused offerings helps KLX build a competitive edge and achieve sustainable business growth which acts as a significant growth driver for the company.
This service provider to oil and natural gas producers is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $168.9 million, down 13% 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 KLX Energy Services, 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 KLXE 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 >>>>
KLX Energy Services is part of the Zacks Oil and Gas - Field Services industry. Kinetik Holdings Inc. (KNTK), another stock in the same industry, closed the last trading session 2.2% higher at $61.92. KNTK has returned 7.4% in the past month.
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