QM · rank #3 · 2026-09-10
NESR
NASDAQ · $3.50B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +433.48% |
|---|---|
| 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 2026-08-11 | $36.01 |
| Anchor (far) Close on 2025-08-11 | $6.75 |
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 ramp in Saudi Arabia's Jafurah gas development alongside broad regional upstream capex expansion.
Rationale
The momentum_12_1 signal of 4.33 is directly reinforced by two consecutive quarters of record revenue (Q1 +33.5% YoY, Q2 +59.1% YoY) with expanding EBITDA margins and management already exceeding a $2B annualized run-rate, confirming fundamental earnings acceleration behind the price move rather than pure sentiment rotation.
Material risks
- 1Jafurah concentration risk is the primary thesis-breaker — NESR lacks a named long-term backlog or sole-source position, so any slowdown, re-sequencing, or Saudi Aramco capex reprioritization on Jafurah would directly collapse the revenue trajectory underpinning both the momentum and quality signals.
- 2The ROE of 9.4% and profit margin of 5.8% are modest for a quality screen, leaving little buffer if competitive pricing pressure from Schlumberger, Halliburton, or regional players compresses margins as NESR scales into larger, more contested contract renewals.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.