After injecting 750% earnings growth in the second quarter, the offshore drilling innovator the previous (XPRO) looks forward to increasing earnings in the third quarter. Now Wall Street expects 481% EPS growth for the full year as XPRO stock explores a new buy point. However, this entry is being tested as selling pressures put the NASDAQ to the test.
SLB stock — which was offered August 2 and again yesterday as today’s stock of IBD — has just dug into its own buy zone.
The oil and gas field services industry ranks #38 out of 197 IBD tracker groups. That’s up from 158 three months ago, buoyed by impressive gains in Tidewater, SLB and Expro.
Like TDW and SLB stocks, Expro has seen a sharp jump in its relative strength line, a sign of its market leadership.
Expro Primes is another innovation in offshore drilling
With roots dating back to 1938, Expro employs approximately 7,600 people, providing services and solutions to leading exploration and production companies in approximately 60 countries. The company operates in both onshore and offshore environments, with approximately 70% of revenue generated from the offshore drilling segment.
Expro has experience in well construction, well flow management, production and access subsea wells. Including 11% of the subsea well access business, 62% of Expo’s revenue comes from well management. Well construction accounts for the remaining 38%.
In the second quarter, Expro had $396 million in revenue, up 27% year-over-year. Earnings growth rose 750% to 17 cents per share. Analysts expect EPS growth of 657% in the third quarter, which would lead to a gain of 481% for the year. Wall Street expects earnings growth of 68% in 2024.
Last month, Expro announced The first decade of cutting-edge technology under the sea. The innovation centers around a two-way valve and a single shear preventer that supports well integrity and helps reduce costs. The contract, valued at more than $15 million, reinforces Expro’s position as a leading provider of subsea well access solutions for chartering.
Expro report card in IBD stock check Indicates strong institutional demand. XPRO shares have a B+ accumulation/distribution rating, a 2.0 up/down ratio and four-quarters incremental fund ownership.
Penetration Tests XPRO Stock Market also shows mixed movement
Following in the footsteps of Tidewater and SLB stocks, Expro has just released a new breakthrough.
The move comes as the Nasdaq tries to hold support at the 50-day moving average.
With the heavy tech index still testing this week, Expro is now below 23.72 buy points in the cup with the handle cleared on Thursday. The volume on the initial breakout was 232% higher than normal. Friday’s downtrend volume came in just around 38% above average – much lighter than Thursday’s breakout volume.
A better-than-expected inflation report gave support to market indices, although they were struggling to sustain these gains by the end of the session. The market remained mixed on Friday, with the S&P and Dow rising while the Nasdaq was struggling.
With Expro testing the recent entry, SLB stock remains in a buy range while Tidewater has entered profit-taking territory 20%-25%.
Follow Matthew Galgani on Twitter at @tweet.
You may also like:
SLB rides high oil and gas prices
US economic optimism is at its lowest level in a year
AI Lovefest offers massive bets on Meta, Tesla, Google, and beyond
Energy Stocks and Industry News: Oil, Gas, Solar and Coal
IBD Leaderboard highlights the best stocks to buy and watch