QM · rank #7 · 2026-09-08
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 momentum_12_1 signal of 3.36 is directly reinforced by two consecutive quarters of record revenue and EBITDA expansion, with Q2 2026 showing 59% YoY revenue growth and management already exceeding a $2B annualized run-rate ahead of schedule, confirming the price move is earnings-driven rather than sentiment-only.
Material risks
- 1Jafurah concentration risk — a meaningful portion of the sequential revenue surge is tied to a single contract ramp, meaning any slowdown in Saudi Aramco's Jafurah development pace or a shift toward in-house execution would disproportionately impair NESR's near-term revenue trajectory.
- 2MENA capex cycle dependency — NESR lacks a disclosed long-term backlog or named contract pipeline beyond current projects, so sustained profitability depends on regional NOC spending remaining elevated, which is vulnerable to oil price softness or policy reprioritization.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.