Strength Seen in Solaris Oilfield Infrastructure (SOI): Can Its 37.4% Jump Turn into More Strength?

Solaris Oilfield Infrastructure, Inc. (SOI) shares ended the last trading session 37.4% higher at $11.36. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.7% loss over the past four weeks.

The surge can be attributed to Solaris’ recent acquisition of the distributed power solution provider, Mobile Energy Rentals, LLC. Mobile Energy’s distributed power solutions complement Solaris’ electric offerings, thereby strengthening its power portfolio. The acquisition also provides Solaris with access to multiple end markets covering oil and gas production, midstream and downstream segments. Furthermore, Solaris has announced that Mobile Energy Rentals will be renamed Solaris Energy Infrastructure Inc. and listed on the New York Stock Exchange. This strategic acquisition of distributed power generation assets has enhanced Solaris’ portfolio with essential infrastructure that's crucial for addressing the increasing demand for power and it has been a significant growth driver.

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $62.65 million, down 18.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Solaris Oilfield Infrastructure, 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 SOI 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 Oilfield Infrastructure belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Schlumberger (SLB), closed the last trading session 0.2% higher at $45.28. Over the past month, SLB has returned 0.5%.

For Schlumberger , the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $0.83. This represents a change of +15.3% from what the company reported a year ago. Schlumberger currently has a Zacks Rank of #3 (Hold).

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