Yahoo Finance NexTier Oilfield Solutions (NEX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, NexTier Oilfield Solutions (NEX) closed at $10.46, marking a -1.97% move from the previous day. This change lagged the S&P 500's daily loss of 1.53%. Meanwhile, the Dow lost 1.72%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Coming into today, shares of the company had gained 17.25% in the past month. In that same time, the Oils-Energy sector gained 2.96%, while the S&P 500 lost 1.28%.
Investors will be hoping for strength from NexTier Oilfield Solutions as it approaches its next earnings release. The company is expected to report EPS of $0.64, up 700% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $926.41 million, up 45.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.58 per share and revenue of $3.91 billion, which would represent changes of +63.29% and +20.55%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NexTier Oilfield Solutions. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.45% higher within the past month. NexTier Oilfield Solutions is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, NexTier Oilfield Solutions is holding a Forward P/E ratio of 4.14. For comparison, its industry has an average Forward P/E of 13.89, which means NexTier Oilfield Solutions is trading at a discount to the group.
Investors should also note that NEX has a PEG ratio of 1.64 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.48 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NEX in the coming trading sessions, be sure to utilize Zacks.com.
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NexTier Oilfield Solutions Inc. (NEX) : Free Stock Analysis Report
