QM · rank #14 · 2026-10-26
NESR
NASDAQ · $2.13B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +205.13% |
|---|---|
| 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. | $2.13B |
| Anchor (recent) Close on 2026-09-25 | $32.13 |
| Anchor (far) Close on 2025-09-26 | $10.53 |
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 generating ~$2B+ annualized revenue from hydraulic fracturing, well testing, drilling, and production services concentrated in Saudi Arabia, Kuwait, Oman, and Egypt.
Rationale
The momentum_12_1 of 2.05 reflects real fundamental acceleration — 59% YoY revenue growth, a $300M Kuwait contract win, four active Jafurah frac fleets, and management raising the 2026 revenue floor to $2B — giving the quality-momentum signal concrete operational backing rather than pure sentiment rotation.
Material risks
- 1Saudi Aramco and Kuwaiti NOCs internalizing fracturing, well-testing, or lithium-extraction capabilities is the primary thesis-breaker, as NESR holds no patent-protected sole-source position and its largest customer is actively building in-house technical capacity (evidenced by the LiThara deal being framed as an Aramco demonstration project, not a commercial outsourcing commitment).
- 2MENA budget concentration means a Saudi Aramco capex cut or geopolitical shock could simultaneously impair Jafurah frac fleet utilization, Kuwait contract drawdowns, and the LiThara demonstration pipeline — compressing both revenue and the ROE/margin metrics underpinning the quality screen.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.