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Strength Seen in Cactus (WHD): Can Its 5.7% Jump Turn into More Strength?

Cactus, Inc. (WHD) shares ended the last trading session 5.7% higher at $52.72. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4% loss over the past four weeks.

The bullishness could be attributed to WHD’s advanced wellhead and frac solutions, which improve drilling efficiency and safety while saving over 30 hours of rig time per well. The acquisition of FlexSteel Technologies has diversified its revenue, enhanced margins, and created growth opportunities beyond the upstream oil and gas sector. Additionally, WHD’s highly engineered products and contributions from the Spoolable Technologies segment have been significant drivers of its stock performance.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -15.5%. Revenues are expected to be $275.92 million, down 9.8% 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 Cactus, the consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WHD 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 >>>>

Cactus is part of the Zacks Oil and Gas - Integrated - United States industry. ConocoPhillips (COP), another stock in the same industry, closed the last trading session 0.1% higher at $109.54. COP has returned -10.1% in the past month.

For ConocoPhillips , the consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $2.27. This represents a change of +23.4% from what the company reported a year ago. ConocoPhillips currently has a Zacks Rank of #3 (Hold).

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