Tidewater is Thursday's IBD Stock Of The Day, with the offshore oil services provider gaining ground on an early entry ahead of second-quarter earnings reports from sector giants Halliburton and SLB.
Houston-based Tidewater has booked sequential revenue increases since Q1 2023, posting its highest quarterly sales in eight years in the first quarter.
The company is expected to report second-quarter earnings in early August with analysts projecting EPS of 94 cents, up 104% compared to a year ago. Quarterly sales are expected to hit another record, totaling $332 million and marking a 54% increase vs. Q2 2023.
Tidewater owns and operates one of the largest fleets of OSVs (offshore support vessels) in the industry. These ferry supplies, personnel and equipment to offshore exploration and development operations. Global in scale, the company operates in the Americas, Asia-Pacific, Middle East, Europe and Mediterranean, and West Africa.
Offshore Drilling Sector Consolidation Is Underway; Will Oil Prices Support Demand?
As Tidewater stock eyes an early entry, Halliburton and SLB report Q2 earnings early Friday. Analysts project a 15% rise in SLB earnings, with Halliburton EPS expected to increase 4%. The industry outlooks in those reports, strong or weak, could affect stocks such as Tidewater.
Meanwhile, U.S. oil prices are trading near $83 per barrel, up around 2% in July and more than 10% higher in 2024. U.S. oil prices are forecast to hover around $80 per barrel for the rest of 2024, according to FactSet analysis.
Tidewater Stock Performance
Shares of Tidewater advanced 1.8% to 102.48 during Thursday's market action. Tidewater stock is basing with an official 111.42 buy point, according to MarketSurge analysis. The base is very late stage, which means investors should closely monitor the stock's behavior.
Tidewater has soared 42% in 2024, outperforming the broader market.
On Wednesday, TDW hit an intraday high of 108.44. It ended the day down 5.4% to 100.68, finding support at its 50-day moving average. If the stock rebounds, aggressive investors could use 108.44 as an early entry. Halliburton and SLB reporting earnings could shake up the energy sector on Friday.
Halliburton stock advanced 0.2% to 36.45 while SLB stock edged down 0.4% to 48.72 on Thursday. Fellow oil field service firm TechnipFMC is in a buy zone from a flat base buy point of 27.30. TechnipFMC reports second-quarter results July 25.
The 29 stocks in the IBD-tracked Oil & Gas-Field Services industry group have collectively gained around 14% in 2024.
Tidewater stock has a perfect 99 Composite Rating, a 91 Relative Strength Rating and an 82 EPS Rating.
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