QM · rank #6 · 2026-09-07
NESR
NASDAQ · $3.50B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +336.39% |
|---|---|
| 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 2026-08-07 | $29.02 |
| Anchor (far) Close on 2025-08-08 | $6.65 |
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 MENA-focused integrated oilfield services provider riding accelerating upstream and gas-development activity, particularly the Jafurah unconventional gas project in Saudi Arabia.
Rationale
The quality-momentum signal is reinforced by back-to-back record quarters — Q2 revenue up 59% YoY with EBITDA margins expanding to 20.4% — demonstrating that price momentum is tracking genuine fundamental acceleration, not mere sentiment rotation.
Material risks
- 1Project concentration risk is acute: the Jafurah ramp is the primary revenue driver, so any contract reprioritization, execution delay, or Saudi Aramco capex pullback would directly collapse the growth narrative underpinning both the momentum and quality signals.
- 2NESR lacks a disclosed long-term backlog or named sole-source position, meaning margin durability depends on sustained MENA capex cycles and competitive pricing rather than contractually locked-in revenue — a vulnerability if global energy prices soften and NOCs reprice or internalize services.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.