USA Compression Partners (USAC) shares soared 12.4% in the last trading session to close at $25.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.5% gain over the past four weeks.
The bullishness could be attributed to USAC’s second-quarter 2023 net profit of 11 cents per common unit, marking a turnaround from the loss of 3 cents reported in the same quarter last year. The company’s fleet utilization rate in the second quarter exceeded 93%, reaching an all-time high of approximately 3.35 million revenue-generating horsepower. Ongoing improvements in fleet utilization and the average revenue per horsepower, with each quarter showing continuous progress have been significant drivers of its stock performance.
This natural gas compression services company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +466.7%. Revenues are expected to be $207.71 million, up 15.7% 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 USA Compression, the consensus EPS estimate for the quarter has been revised 10.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on USAC 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 >>>>
USA Compression belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, Now (DNOW), closed the last trading session 1.5% higher at $12.30. Over the past month, DNOW has returned 9.1%.
Now's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. Compared to the company's year-ago EPS, this represents a change of -20%. Now currently boasts a Zacks Rank of #4 (Sell).
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