Strength Seen in Oceaneering International (OII): Can Its 10.1% Jump Turn into More Strength?

Oceaneering International (OII) shares rallied 10.1% in the last trading session to close at $16.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 7.4% gain over the past four weeks.

Oceaneering International extended its rally for the fourth straight day, driven by optimism over crude prices spurred by a supportive macro backdrop, geopolitical tensions and the OPEC+ supply curtailments. The steady increase in commodity prices to more than $100 a barrel has lifted the oilfield service space and contributed to the strength in this leading supplier of offshore equipment and technology solutions to the energy industry. Besides, an improving demand landscape prompted Piper Sandler to raise the price target on the company.

This oilfield services company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $474.35 million, up 8.4% 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 Oceaneering International, 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 OII 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 >>>>

Oceaneering International is a member of the Zacks Oil and Gas – Field Services industry. One other stock in the same industry, Helix Energy (HLX), finished the last trading session 11.5% higher at $4.95. HLX has returned 13% over the past month.

For Helix Energy

, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.25. This represents a change of -1150% from what the company reported a year ago. Helix Energy currently has a Zacks Rank of #2 (Buy).


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