RPC (RES) outpaces stock market gains: what you need to know

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IIn the last trading session, RPC (RES) closed at $6.22, marking a +1.97% move from the previous day. The change outpaced the S&P 500’s 1.92% gain on the day. Meanwhile, the Dow Jones gained 2.15% and the tech-heavy Nasdaq gained 0.16%.

As today approached, shares of the oil and gas services company had lost 20.57% over the past month, trailing the Oil & Energy sector’s 15.44% loss and the 1.54% gain in the S&P 500 during this period.

RPC will look to show strength heading into its next earnings release, which is expected on July 27, 2022. Meanwhile, our latest consensus estimate calls for revenue of $322.1 million, up from 70.64% compared to the quarter of the previous year.

Zacks consensus estimates for the full year of RES call for earnings of $0.44 per share and revenue of $1.32 billion. These results would represent year-over-year variations of +1,366.67% and +52.57%, respectively.

It is also important to note recent changes to analyst estimates for RPC. These revisions generally reflect the latest short-term trading trends, which may change frequently. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Our research shows that these estimate changes are directly correlated to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has risen 0.76% . RPC is currently a Zacks Rank #2 (Buy).

In terms of valuation, RPC is currently trading at a forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 18.2, so we can conclude that RPC is trading at a discount comparatively.

The Oil and Gas – Field Services industry is part of the Oils-Energy sector. This group has a Zacks industry ranking of 56, which places it in the top 23% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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