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Strength Seen in Select Energy Services (WTTR): Can Its 7.8% Jump Turn into More Strength?

Select Energy Services (WTTR) shares soared 7.8% in the last trading session to close at $8.83. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.2% loss over the past four weeks.

Oil pricing scenario continues to be healthy for exploration and production activities. This is aiding upstream energy firms to add more drilling rigs in oil and gas resources. This in turn is beneficial for Select Energy Services, since the company is a leading oilfield service player, providing solutions related to water management and chemical to the onshore oil and gas industry.

This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +428.6%. Revenues are expected to be $387.89 million, up 52% 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 Select 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 WTTR 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 >>>>

Select Energy Services belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Solaris Oilfield Infrastructure, Inc. (SOI), closed the last trading session 4.5% higher at $10.60. Over the past month, SOI has returned -6.4%.

For Solaris Oilfield Infrastructure, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. This represents a change of +850% from what the company reported a year ago. Solaris Oilfield Infrastructure, Inc. currently has a Zacks Rank of #3 (Hold).

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