QM · rank #13 · 2026-07-24
NESR
NASDAQ · $2.82B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +326.61% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +6.7% |
| Profit margin Net profit margin, trailing 12 months. | +4.5% |
| Market cap (USD) Size filter: > $500M required. | $2.82B |
| Anchor (recent) Close on 2026-06-24 | $25.17 |
| Anchor (far) Close on 2025-06-24 | $5.90 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
NESR is an integrated oilfield services provider generating record revenues from hydraulic fracturing and well testing activity concentrated in relatively stable international markets.
Rationale
Strong 12-1 momentum (3.27) is directly reinforced by 33.5% YoY revenue growth, a Q1 2026 EPS beat of ~$0.05, and analyst EPS estimates nearly doubling to $2.58, while ROE and margins, though modest, are trending in the right direction for a quality-momentum screen.
Material risks
- 1Hydraulic fracturing and well testing are explicitly described as activity-driven and relationship-based rather than technology-differentiated, meaning any pullback in customer capex or entry of lower-cost competitors could rapidly compress margins and break the momentum leg of the thesis.
- 2Net margin of ~4.5% and ROE of ~6.7% (model signal) leave virtually no buffer if oil price softness triggers a regional activity slowdown, and the planned Q4 2026 dividend initiation signals management confidence that could prove premature if the cycle turns.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.