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Solaris Energy Infrastructure, Inc. (SEI) shares soared 9.8% in the last trading session to close at $34.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.6% gain over the past four weeks.
The bullishness can be attributed to Solaris Energy’s successful strategic acquisition of Mobile Energy Rentals, which enhanced its service offerings and growth potential, boosting investor confidence. Additionally, SEI raised $156 million through a public offering, with the proceeds allocated to support growth capital and equipment purchases. Improved utilization and better cost absorption in its power solutions segment further strengthened its financial performance. These developments have likely contributed to the surge in SEI’s stock price, reflecting strong growth prospects and positive investor sentiment.
This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -6.7%. Revenues are expected to be $100.9 million, up 59.3% 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 Solaris Energy Infrastructure, Inc., 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 SEI 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 >>>>
Solaris Energy Infrastructure, Inc. is a member of the Zacks Oil and Gas - Mechanical and and Equipment industry. One other stock in the same industry, Nov Inc. (NOV), finished the last trading session 3.8% lower at $14.93. NOV has returned 7% over the past month.
For Nov Inc. , the consensus EPS estimate for the upcoming report has changed -2.9% over the past month to $0.35. This represents a change of -35.2% from what the company reported a year ago. Nov Inc. currently has a Zacks Rank of #5 (Strong Sell).
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