QM · rank #6 · 2026-09-04
NESR
NASDAQ · $3.50B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +321.41% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +9.4% |
| Profit margin Net profit margin, trailing 12 months. | +5.8% |
| Market cap (USD) Size filter: > $500M required. | $3.50B |
| Anchor (recent) Close on 2026-08-05 | $28.15 |
| Anchor (far) Close on 2025-08-05 | $6.68 |
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 a NASDAQ-listed integrated oilfield services provider focused on MENA and Asia-Pacific markets, offering production and drilling services primarily to national oil companies across 15+ countries.
Rationale
The momentum signal (12-1: 3.21) is reinforced by concrete fundamental catalysts — record Q2 2026 revenue up 59% YoY, nearly tripled net income, a $300M Kuwait contract win, and the Jafurah ramp — giving the price trend an earnings-driven backbone consistent with quality-momentum logic.
Material risks
- 1MENA concentration means a single geopolitical disruption, NOC capex freeze, or sanctions event in Saudi Arabia or Kuwait could abruptly reverse the contract-driven revenue ramp that is the core thesis driver.
- 2NESR competes on integrated local execution rather than proprietary technology, so margin and pricing power remain vulnerable if larger global OFS peers bundle similar services at scale or NOC clients selectively insource high-volume completions work.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.