QM · rank #2 · 2026-09-09
NESR
NASDAQ · $3.50B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +438.20% |
|---|---|
| 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 2026-08-10 | $35.79 |
| 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 a major revenue ramp driven by the Jafurah gas development and elevated upstream capex across Saudi Arabia, Oman, and Egypt.
Rationale
The momentum_12_1 signal of 4.38 is directly supported by fundamental acceleration — Q2 revenue surged 59% YoY with EBITDA margins expanding to 20.4% and management already exceeding a $2B annualized run-rate, giving the quality-momentum screen genuine earnings-driven backing rather than pure sentiment rotation.
Material risks
- 1Project concentration risk is acute — Jafurah is the primary growth engine, and any contract reprioritization, execution delay, or Saudi Aramco capex pullback would disproportionately impair the revenue trajectory underpinning both the momentum and quality signals.
- 2ROE of 9.4% and profit margins of 5.8% are modest for a quality screen, leaving little buffer if competitive pricing pressure from Halliburton, SLB, or regional players compresses margins as NESR scales into larger, more contested contracts.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.