On Jun 13, Zacks Investment Research upgraded oilfield service
Core Laboratories N.V.
) to Zacks Rank #2 (Buy).
CORE LABS NV (CLB): Free Stock Analysis
DAWSON GEOPHYS (DWSN): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
EXTERRAN PTNRS (EXLP): Free Stock Analysis
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Why the Upgrade?
Core Lab has been witnessing rising earnings estimates following
impressive first quarter 2013 results that were backed by global
deepwater hydrocarbon developments. The company's consistent
emphasis on international crude-oil developments (mainly in
deepwater), its global high-grading unconventional crude oil and
natural gas opportunities as well as improvements in North
American operations complemented the results.
On Apr 17, Core Lab reported earnings per share (EPS) of $1.22,
surpassing the Zacks Consensus Estimate of $1.15. Comparing year
over year, EPS increased 8.0% excluding one-time items.
With respect to the earnings trend, Core Lab delivered positive
earnings surprises in 3 of the last 4 quarters with an average
beat of 2.87%. Moreover, the company has been gaining
shareholders' confidence by returning wealth via share
repurchases and dividend hikes. It increased its quarterly common
stock dividend by 14.2% to 32 cents per share ($1.25 per share
annualized) in Jan 2013.
The long-term expected earnings and sales growth projections of
18.0% and 7.48%, respectively, are also fairly impressive.
Based on Core Lab's consistency in earnings, attractive
fundamentals and a positive outlook, the Zacks Consensus Estimate
for the second quarter of 2013 has increased 4.0% to $1.31 per
share over the last 60 days. For 2013, the Zacks Consensus
Estimate increased 1.6% over the same time frame to $5.22 per
We believe that Core Labs' technology-heavy portfolio of
proprietary products and services gives it the opportunity to
optimize production from new and existing fields. The company
remains well positioned onshore U.S. given its strong presence in
the emerging shale plays, where activity levels are not affected
by the ongoing financial turmoil and commodity-price uncertainty.
Other stocks to consider
In addition to Core Lab, there are other firms in the oilfield
service industry that are expected to perform well in the coming
one to three months. These include
Dawson Geophysical Company
Exterran Partners L.P.
Exterran Holdings Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).