Back to top

Image: Bigstock

Aris Water Solutions (ARIS) Surges 6.4%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Aris Water Solutions, Inc. (ARIS - Free Report) shares ended the last trading session 6.4% higher at $18.83. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.4% gain over the past four weeks.

The stock is benefiting from consistent revenues growth, improved margins, and efficient capital investment which has allowed the company to generate excess cash and further improve its ability to increase returns to shareholders.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +58.8%. Revenues are expected to be $105.29 million, up 5.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Aris Water Solutions, the consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ARIS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Aris Water Solutions is part of the Zacks Waste Removal Services industry. Waste Management (WM - Free Report) , another stock in the same industry, closed the last trading session 0.2% higher at $207.52. WM has returned -0.8% in the past month.

Waste Management's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.86. Compared to the company's year-ago EPS, this represents a change of +14.1%. Waste Management currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Waste Management, Inc. (WM) - free report >>

Aris Water Solutions, Inc. (ARIS) - free report >>

Published in