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Flotek Industries (FTK) shares soared 9.5% in the last trading session to close at $5.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% gain over the past four weeks.
The surge can be attributed to Flotek’s specialization in green chemistry, which offers innovative solutions aimed at reducing the environmental impact of the energy sector. Governments and energy companies worldwide are increasingly focusing on reducing the emissions and the environmental impact of the industry, and Flotek aligns with this global trend by offering unique solutions designed to address these challenges. The company manufactures specialty chemicals made for both independent energy producers and oilfield service companies in domestic as well as international markets. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs. This has been a significant growth driver for the company.
This oilfield services company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +75%. Revenues are expected to be $50.4 million, up 6.6% 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 Flotek Industries, 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 FTK 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 >>>>
Flotek Industries belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Solaris Oilfield Infrastructure, Inc. (SEI), closed the last trading session 6.1% higher at $12.72. Over the past month, SEI has returned -0.3%.
SOLARIS EGY INF's consensus EPS estimate for the upcoming report has changed -3.7% over the past month to $0.13. Compared to the company's year-ago EPS, this represents a change of -31.6%. SOLARIS EGY INF currently boasts a Zacks Rank of #3 (Hold).
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