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Here's Why it is Worth Investing in RPC (RES) Stock Right Now

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RPC, Inc. (RES - Free Report) has witnessed upward estimate revisions for 2021 bottom line in the past 30 days. The stock, carrying a Zacks Rank #2 (Buy), is likely to see bottom-line growth of 88.9% this year.

What’s Favoring the Stock?

With West Texas Intermediate crude price approaching the $70-per-barrel mark, oil price has recovered considerably from the pandemic-hit April last year, when the commodity was in the negative territory.

Increasing oil price is encouraging explorers are producers to gradually return to shale plays. This is evident from Baker Hughes Company’s (BKR) weekly release that reported that from 275 oil rigs in the U.S. resources for the week ended Jan 8, 2021, the tally has increased massively to 410 for the week ended Aug 27, 2021.

Thus, higher upstream activities are beneficial for RPC since the company is engaged in providing specialized oilfield services and equipment, primarily to explorers and producers. The company expects its customers to respond to the favorable commodity pricing scenario and thereby will plan for increased drilling and completion activities in the second half of this year. This will get translated into higher demand for the company’s oilfield service and will secure incremental cashflows.

The company said that an additional horizontal pressure pumping fleet has been recently activated since the oilfield service player projects a surge in activities in this service line through the second half of 2021.

Other Stocks to Consider

Other promising players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1 (Strong Buy), PDC Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.


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