High Risk, High Reward: NexTier Oilfield Solutions Inc. (NEX)

NexTier Oilfield Solutions Inc.’s stock (NYSE:NEX) has been rated as Buy by Goldman. This latest rating was contained in a recent research note published by the firm on December 17, 2019 and has set a $9 price target for the stock. Some experts on Wall Street have also posted a report on NexTier Oilfield Solutions Inc. (NEX) stock.

Credit Suisse rated the stock as a Neutral in a research noted published on December 03, 2019. JP Morgan rated the stock as a Overweight in a research note published on December 02, 2019.

As it stands, a total of 19 analysts are covering NEX stock, with 13 of them rating it as a Buy while 1 of them rating it as Overweight. 5 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that NexTier Oilfield Solutions Inc. (NEX) stock has an average rating of Overweight.

NexTier Oilfield Solutions Inc. (NEX) which is currently valued at 1.39 billion. In recent quarter, the company recorded a revenue of 561.64 million, which was lower than the forecast of 676.84 million made by some analysts. For that same quarter, NexTier Oilfield Solutions Inc. (NEX) posted $0.11 earnings per share (EPS) which was above the analyst consensus estimate of $0.01 by $0.1, which represents an increase by 1,000.00%.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, NEX price has dropped by -2.82%. A look at its price performance over the past three months sees the stock go up by 7.21%, while it has lost -2.68% over the past six months and -17.63% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on NexTier Oilfield Solutions Inc. (NEX) has seen its stock trading -6.44% below its three-month high price. A look at the other side also sees stock trading +61.48% above its three-month low. A wider look sees NEX trading -6.44% below its 52-week high and 61.48% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. NexTier Oilfield Solutions Inc. (NEX) has so far given an ROE of -3.60%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. NexTier Oilfield Solutions Inc. (NEX)’s ROA at the moment stands at -1.60%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

NexTier Oilfield Solutions Inc. (NEX) has a return on investment (ROI) of 9.60%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at NexTier Oilfield Solutions Inc. (NEX)’s trading volatility. Its 7-day volatility is around 4.22%, while it has a monthly volatility of 4.94%. NEX has an ATR (Average True Range) of 0.28. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of NEX moved down by -$0.27 during the normal trading session on Friday to trade at $6.54. The NexTier Oilfield Solutions Inc. (NEX) stock has a trading volume of 1.31 million shares, which is low, compared to its average daily volume of 2.36M shares.