Our Stock of the Week is National Energy Services Reunited Corp. (NESR). NESR is one of the largest national oilfield services providers in the Middle East and North Africa, delivering integrated drilling, fracturing, cementing, and production services to national oil companies across the region, with deep exposure to the Middle Eastern (particularly Saudi Arabia) and North African ongoing investment to expand and modernize their oil and gas infrastructure. and the broader MENA energy buildout. Notably, NESR not only holds long-term contracts that typically run three to nine years and provide unusually strong revenue visibility, but is well-positioned for the oil infrastructure rebuild following the end of the Iran War.
After spending several years under a cloud tied to a restatement of its 2018-2020 financials and a related SEC matter, which likely kept institutional investors sidelined, NESR finally hit traders radar screens on Aug 20 when the company reported Q2 results and announced it had remediated the final material weakness in its financial controls, completing all undertakings required under its 2024 SEC settlement. Shares spent the next several months making steady upside progress, with a multi-billion-dollar contract in Saudi Arabia providing a tailwind, prompting Barclays to raise its target to $34 and UBS to $31.
From a valuation perspective, analysts currently call for earnings growth of 39% in 2026 and another 22% in 2027, against a trailing PE of about 25x and a forward PE of 13x. Technically, NESR trended steadily higher off that August 20th earnings catalyst and broke to record highs in early January before falling back in late February and early March amid the disruption in regional activity. However, shares quickly found support and have spent the past few months forming an ascending triangle at highs. As always, we will not chase any early strength on Monday morning, but will look to aggressively trade the stock as the chart develops.
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This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in NESR at the time this was published. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
