The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ProFrac Holding Corp. (ACDC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
ProFrac Holding Corp. is one of 252 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ProFrac Holding Corp. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACDC's full-year earnings has moved 13.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that ACDC has returned about 33.7% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 23.3%. As we can see, ProFrac Holding Corp. is performing better than its sector in the calendar year.
Another stock in the Oils-Energy sector, HF Sinclair (DINO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 77.3%.
Over the past three months, HF Sinclair's consensus EPS estimate for the current year has increased 54.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ProFrac Holding Corp. belongs to the Oil and Gas - Field Services industry, a group that includes 20 individual stocks and currently sits at #107 in the Zacks Industry Rank. On average, this group has gained an average of 31.6% so far this year, meaning that ACDC is performing better in terms of year-to-date returns.
In contrast, HF Sinclair falls under the Oil and Gas - Refining and Marketing industry. Currently, this industry has 16 stocks and is ranked #45. Since the beginning of the year, the industry has moved +49%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to ProFrac Holding Corp. and HF Sinclair as they could maintain their solid performance.
ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac" or the "Company") today announced that, on July 1, 2026, ProFrac Holdings II, LLC, as borrower (the âABL Borr
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac" or the "Company") today announced that, on July 1, 2026, ProFrac Holdings II, LLC, as borrower (the “ABL Borrower”), the guarantors party thereto and the lenders party thereto entered into a new credit agreement with Eclipse Business Capital LLC (“Eclipse”), as agent, collateral agent, swingline lender, lead arranger and bookrunner, providing for a $300 million asset-based revolving credit facility (the “Eclipse ABL Credit Facility”), which refinanced and replaced the Company’s preexisting $275 million asset-based revolving credit facility under that certain Credit Agreement, dated as of March 4, 2022, with JPMorgan Chase Bank, N.A., as agent and collateral agent, as most recently amended by the Ninth Amendment to Credit Agreement, dated as of March 3, 2026 (the “Preexisting JPM ABL Facility”). The Eclipse ABL Credit Facility will mature in July 2030.
Highlights
Refinances the Preexisting JPM ABL Facility, which would mature in September 2027, with the Eclipse ABL Credit Facility, which matures in July 2030 Provides improved borrowing base terms to position the Company with increased liquidity Improves maximum facility size from $275 million to $300 million Extends the Company’s ABL maturity profile and provides additional runway Transaction Overview
Proceeds of loans under the Eclipse ABL Credit Facility were used to repay amounts outstanding under the Preexisting JPM ABL Facility and to pay certain fees and expenses. This refinancing transaction provides the Company with additional liquidity compared to the Preexisting JPM ABL Facility and an extended ABL maturity profile to support continued execution of its strategic initiatives. The credit agreement governing the Eclipse ABL Credit Facility (the “Eclipse Credit Agreement”) provides for revolving commitments of up to $300 million on the closing date, compared to $275 million under the Preexisting JPM ABL Facility, and includes an uncommitted accordion feature that permits the ABL Borrower to request increases in the facility of up to $25 million in the aggregate, subject to the terms and conditions set forth therein, for a maximum facility size of up to $325 million.
The Eclipse ABL Credit Facility is secured by liens on substantially all of the assets of the ABL Borrower and the guarantors, subject to permitted liens, certain exceptions and the applicable intercreditor agreement. The liens securing the Eclipse ABL Credit Facility are first-priority liens on current asset collateral and, to the extent applicable, second-priority liens on fixed asset collateral.
Borrowings under the Eclipse Credit Agreement bear interest at Adjusted Term SOFR plus 4.25% until January 1, 2027, and thereafter at a per annum rate equal to either (i) the Base Rate plus an applicable margin ranging from 3.00% to 3.50% or (ii) Adjusted Term SOFR plus an applicable margin ranging from 4.00% to 4.50%, in each case based on availability and a fixed charge coverage ratio pricing grid.
The Eclipse Credit Agreement matures on July 1, 2030, unless terminated earlier in accordance with its terms, and borrowings thereunder are subject to customary conditions precedent. The Eclipse Credit Agreement also contains various representations, warranties and affirmative and negative covenants that the Company considers customary for asset-based lending facilities.
The Eclipse Credit Agreement contains customary events of default, including, without limitation, nonpayment of principal, reimbursement obligations in respect of letters of credit, interest, fees or other amounts, material inaccuracy of representations and warranties, covenant defaults, cross-defaults to certain material indebtedness, insolvency proceedings, judgments, ERISA events, change of control and certain invalidity or unenforceability events. During the continuance of an event of default, the applicable interest rate may increase by 2.00%, subject to certain exceptions and cure rights.
The foregoing description is a summary of the material terms of the Eclipse Credit Agreement and is not complete and is subject to, and qualified in its entirety by, the complete text of the Eclipse Credit Agreement which will be filed as an exhibit to the Company’s Current Report on Form 8-K.
Advisors
Moelis & Company LLC acted as exclusive placement agent, and Gibson, Dunn & Crutcher LLP acted as legal counsel to ProFrac in connection with the refinancing.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated, innovation-driven energy services holding company providing hydraulic fracturing, proppant production, other completion services and other complementary products and services including distributed power generation to leading upstream oil and natural gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources throughout the United States. ProFrac operates in four business segments: Stimulation Services, Proppant Production, Manufacturing, and Flotek. For more information, please visit ProFrac’s website at www.PFHoldingsCorp.com.
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “momentum,” or similar words. Forward-looking statements relate to future events or the Company’s future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company’s strategies and plans for growth; the Company’s positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; customer contracts, activity, relations, or pricing; fleet deployment levels; the Company’s expectations about price fluctuations, global activity, market reactions and macroeconomic conditions impacting the industry; competitive conditions in the industry; success of the Company’s ongoing strategic initiatives; the Company’s intention to increase the number of fully integrated fleets; the Company’s currently expected guidance regarding its 2026 financial and operational results; the Company’s ability to earn its targeted rates of return; the Company’s ability to achieve or realize benefits from its asset optimization program; pricing of the Company’s services in light of the prevailing market conditions; the Company’s currently expected guidance regarding its planned capital expenditures; statements regarding the Company’s liquidity and debt obligations; the Company’s anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company’s outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the Company’s acquisitions, mining operations, and vertical integration strategy, including risks and costs relating to integrating acquired assets and personnel; risks that the Company’s actions intended to achieve its 2026 financial and operational guidance will be insufficient to achieve that guidance, either alone or in combination with external market, industry or other factors; the failure to operationalize or utilize to the extent anticipated the Company’s fleets and sand mines in a timely manner or at all; the Company’s ability to deploy capital in a manner that furthers the Company’s growth strategy, as well as the Company’s general ability to execute its business plans; the risk that the Company may need more capital than it currently projects or that capital expenditures could increase beyond current expectations; risks regarding the ability to access to additional capital on acceptable terms or at all; industry conditions, including fluctuations in supply, demand and prices for the Company’s products and services and for oil and natural gas; global and regional economic and financial conditions, including as they may be affected by hostilities in the Middle East and in Ukraine, as well as the instability in Venezuela; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved, in whole or part, or that any of the contemplated results of such forward-looking statements will be realized, including without limitation any expectations about the Company’s operational and financial performance or achievements through and including 2026. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2025 full year and fourth quarter ended December 31, 2025. Full Year 2025 Results Total revenue was $1.94 billion compared to revenue of $2.19 billion in 2024 Net loss was $356 million compared to net loss of $208 million in 2024 Adjusted EBITDA¹ was $310 million compared to $501 million in 2024; 16% of revenue in 2025 compared to 23%.
, /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac"), in partnership with Seismos, Inc. ("Seismos"), announced today the successful completion of their fully closed-loop fracturing program, demonstrating the first real-time, intra-stage optimization utilizing in-well subsurface measurements and immediate surface actuation. The program took place in the Eagle Ford & Austin Chalk basins with a 4-well pad configuration. From February 13 to March 4, 2026, 183 stages were completed utilizing the ProFrac-Seismos leading-edge, closed-loop fracturing technology.
ProFrac and Seismos Deploy Closed-Loop Fracturing at Commercial Scale Using Direct In-Well Measurements Unlike systems that rely on offset well measurements to infer treatment well performance, this approach focuses directly on the targeted asset, the treatment well. It tracks subsurface performance through direct in-well measurements while pumping, detects deviations algorithmically, executes corrective action instantly, and validates the response within the same stage at any point. During deployment, average response time from data acquisition to automated treatment adjustment was under five minutes, with future targets below two minutes.
Industry research shows improved cluster-level fluid distribution, currently measured exclusively by the ProFrac-Seismos closed-loop system, can increase productivity by up to 20%, highlighting the value of real-time measurement and adjustment. These findings align with a recent URTeC study (Craig Cipolla et al. – URTeC 4044071, 2024), which quantifies the value of achieving uniform fluid distribution across all clusters.
Intervention Methodology and Execution
The ProFrac-Seismos closed-loop control logic activated when intra-stage performance deviations were detected against defined envelopes and triggers. When criteria were met, the Seismos proprietary measurement system (SAFA™) and completion logic prescribed corrective interventions, and ProFrac's surface automation system (ProPilot®) executed coordinated adjustments during the active stage.
Primary triggers included mid-stage perforation efficiency falling below the 70% threshold or a rapid PE degradation trend detected during the active stage. In response, surface parameters adjusted intra-stage included rate adjustments to improve cluster stimulation, friction reducer adjustments to maintain stable treating pressure, and other operational parameters controlled by ProPilot®.
As a result of the closed-loop optimization process, stages with intra-stage interventions experienced an additional 7% improvement in mid-stage perforation efficiency and 7.5% improvement in end-of-stage perforation efficiency compared to stages without intervention. There were no screen-outs attributable to intra-stage intervention adjustments and no additional non-productive time (NPT) introduced.
Why ProFrac-Seismos Closed Loop is a step change
Traditional frac execution often relies on treating pressure and post-job interpretation to infer downhole performance. Attempts to optimize the treatment well using offset responses face natural limitations because the treatment well lacks critical direct measurements indicative of performance. The ProFrac-Seismos closed loop changes that model by using real-time in-well measurements to guide decisions so treatments can be optimized as they are executed. Its integrated architecture is designed to scale control and learnings across stages and pads, combining real-time execution with a continuous improvement loop for design and operational decisioning.
Matt Wilks, Executive Chairman of ProFrac Holding Corp., stated, "Closed-loop fracturing begins with accurate, real-time subsurface measurements, but its full value is realized when that intelligence drives coordinated surface execution. Through ProPilot® surface automation and selective chemistry integration, we are enabling true intra-stage adjustments at scale and advancing the industry's first fully integrated closed-loop fracturing architecture. We cannot change the resource itself. However, we know that as many as 35% of perforations remain closed after completion operations. Machina™, our well optimization suite, exists to help operators access that remaining 35% and maximize the productive potential of every stage."
Controlling the Frac Outcome
"We are no longer just measuring the well; we are controlling the frac outcome," said Panos Adamopoulos, Founder and CEO of Seismos. "Seismos, with its proprietary measurements and completion logic systems, is the core intelligence layer that makes Closed-Loop Fracturing possible. By standardizing on Uniformity Index (UI) as the primary control metric, we ensure consistent, precise execution across all crews and basins, aligning real-time work with measurable production drivers."
About ProFrac
ProFrac Holding Corp. is a technology-focused, vertically integrated and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. ProFrac operates through four business segments: Stimulation Services, Proppant Production, Manufacturing, and Other Business Activities. For more information, please visit ProFrac's website at www.PFHoldingsCorp.com.
About Seismos
Seismos delivers actionable data intelligence across the energy infrastructure, enabling greater situational awareness, confident decision-making, and superior performance. The company pioneered real-time frac optimization in 2018, which led to its portfolio of Closed-Loop automation, including physics-based subsurface measurement technologies, advanced completion logic systems, AI-based frac advisory systems and a vast data repository of hundreds of thousands of stages.
ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.51 per share versus the Zacks Consensus Estimate of a loss of $0.44. This compares to a loss of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -15.91%. A quarter ago, it was expected that this company would post a loss of $0.43 per share when it actually produced a loss of $0.6, delivering a surprise of -39.53%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $436.5 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.91%. This compares to year-ago revenues of $454.7 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ProFrac Holding Corp. shares have added about 78.9% since the beginning of the year versus the S&P 500's decline of 2.5%.
What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.41 on $404.82 million in revenues for the coming quarter and -$1.43 on $1.72 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Oils-Energy sector, Natural Gas Services (NGS - Free Report) , is yet to report results for the quarter ended December 2025. The results are expected to be released on March 16.
This maker of natural gas compression equipment and industrial flare systems is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +27.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Natural Gas Services' revenues are expected to be $43.92 million, up 8% from the year-ago quarter.
ProFrac is a leading U.S. oilfield services player that boasts a modernized frac fleet. U.S. completions activity had already bottomed before the recent geopolitical events, setting ACDC for higher EBITDA over the next quarters. A supply response from U.S. producers to the war in the Middle East will further tighten the frac market but is not a requirement for the company to improve its profitability.
ProFrac Holding Corp. (ACDC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
TechnipFMC (NYSE: FTI - Get Free Report) and ProFrac (NASDAQ: ACDC - Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends. Insider and Institutional Ownership 96.6% of TechnipFMC shares are owned
For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. ProFrac Holding Corp. (ACDC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.
ProFrac Holding Corp. is one of 240 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ProFrac Holding Corp. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACDC's full-year earnings has moved 6.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ACDC has moved about 50.4% on a year-to-date basis. Meanwhile, stocks in the Oils-Energy group have gained about 26.3% on average. This means that ProFrac Holding Corp. is performing better than its sector in terms of year-to-date returns.
Another stock in the Oils-Energy sector, California Resources Corporation (CRC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.5%.
The consensus estimate for California Resources Corporation's current year EPS has increased 90.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ProFrac Holding Corp. belongs to the Oil and Gas - Field Services industry, a group that includes 19 individual stocks and currently sits at #35 in the Zacks Industry Rank. This group has gained an average of 37.8% so far this year, so ACDC is performing better in this area.
In contrast, California Resources Corporation falls under the Oil and Gas - Exploration and Production - United States industry. Currently, this industry has 35 stocks and is ranked #22. Since the beginning of the year, the industry has moved +24.4%.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to ProFrac Holding Corp. and California Resources Corporation as they could maintain their solid performance.
Key Takeaways Screen picks ADM, BG, ACDC, CAH and CNC on net broker upgrades plus higher Q1 estimates.Strait of Hormuz disruption induced by the Iran war continues to grab headlines.ADM sees Nutrition improving while CAH leans on specialty distribution. Agreed that the first-quarter 2026 earnings season is in its nascent stage, but the start has nevertheless been impressive. Quite a few companies have come up with better-than-expected earnings per share and the trend may very well continue throughout the reporting cycle. In the meantime, uncertainty prevails, with the war in Iran continuing to grab headlines.
On Friday, oil prices dropped sharply, and stocks were buoyed by the announcement that the Strait of Hormuz was open again for commercial tankers, raising hopes for a peace deal. Over the weekend, the optimism faded, with Iran declaring the Strait, a vital route connecting the Persian Gulf to global markets, closed in response to the continuing U.S. Navy blockade.
Given this backdrop, investors would do well to keep a tab on broker-adored stocks like Archer Daniels Midland (ADM - Free Report) , Bunge Global (BG - Free Report) , ProFrac Holding (ACDC - Free Report) , Cardinal Health (CAH - Free Report) and Centene (CNC - Free Report) .
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Archer Daniels has been actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company’s Nutrition segment is showing signs of recovery, led by improving performance in Human Nutrition.
Archer Daniels, currently sporting a Zacks Rank #1 (Strong Buy), expects its 2026 earnings per share to increase 26% on a year-over-year basis. ADM’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 3.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge is a global agribusiness and food company worldwide. The company is executing a fundamental transformation anchored by the Viterra merger, expanding global origination, and processing scale and logistics efficiency. Management is prioritizing synergy capture, portfolio optimization and disciplined capital allocation to strengthen cash flows, reduce earnings volatility and enhance long-term returns across agricultural cycles.
Bunge, currently carrying a Zacks Rank #2 (Buy), expects its 2026 earnings per share to increase 8.1% on a year-over-year basis. BG’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 15.9%.
ProFrac Holding has a strong foothold in premium techniques and technology serving the energy industry. ProFrac Holding supplies technology and solutions mainly to exploration and production companies to extract resources more efficiently and cost-effectively using advanced fracking technology and services.
ProFrac’s well stimulation services are centered around key basins like the Permian, Eagle Ford, Haynesville, Appalachia, the Bakken and the Rockies, supporting future earnings growth. The expected long-term (3-5 years) EPS growth rate is an impressive 28.4%. ProFrac currently carries a Zacks Rank #2.
Cardinal Health, currently carrying a Zacks Rank #2, is expected to maintain its operational momentum in 2026, driven by steady performance across both its Pharmaceutical and Medical segments. In Pharmaceutical, growth will likely come from continued volume gains with large retail chains, strong specialty distribution and expanding partnerships with health systems.
Specialty therapeutics, particularly in oncology and chronic care, remain key revenue drivers, supported by Cardinal Health’s extensive distribution network and manufacturer service offerings. Rising biosimilar adoption and growing demand for patient support programs further strengthen the segment’s outlook. CAH’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 9.3%.
Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.6%. The stock carries a Zacks Rank #3 (Hold).
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
ProFrac Holding Corp. (ACDC - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 9.5% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ACDC meets this criterion too, as the stock gained 46.7% over the past 12 weeks.
Moreover, the momentum for ACDC is fast paced, as the stock currently has a beta of 1.44. This indicates that the stock moves 44% higher than the market in either direction.
Given this price performance, it is no surprise that ACDC has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACDC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ACDC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ACDC is currently trading at 0.68 times its sales. In other words, investors need to pay only 68 cents for each dollar of sales.
So, ACDC appears to have plenty of room to run, and that too at a fast pace.
In addition to ACDC, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at ProFrac Holding Corp. (ACDC - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. ProFrac Holding Corp. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ACDC is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ACDC, shares are up 0.85% over the past week while the Zacks Oil and Gas - Field Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.54% compares favorably with the industry's 3.96% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of ProFrac Holding Corp. have increased 46.71% over the past quarter, and have gained 57.72% in the last year. On the other hand, the S&P 500 has only moved 3.07% and 33.83%, respectively.
Investors should also take note of ACDC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ACDC is averaging 1,213,263 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ACDC.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ACDC's consensus estimate, increasing from -$1.43 to -$1.31 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ACDC is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep ProFrac Holding Corp. on your short list.
Wall Street expects a year-over-year decline in earnings on lower revenues when ProFrac Holding Corp. (ACDC - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -254.6%.
Revenues are expected to be $390.43 million, down 35% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ProFrac Holding Corp.?For ProFrac Holding Corp., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.98%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that ProFrac Holding Corp. will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ProFrac Holding Corp. would post a loss of$0.44 per share when it actually produced a loss of -$0.51, delivering a surprise of -15.91%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ProFrac Holding Corp. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerArchrock Inc. (AROC - Free Report) , another stock in the Zacks Oil and Gas - Field Services industry, is expected to report earnings per share of $0.45 for the quarter ended March 2026. This estimate points to a year-over-year change of +7.1%. Revenues for the quarter are expected to be $376.69 million, up 8.5% from the year-ago quarter.
The consensus EPS estimate for Archrock Inc. has been revised 5.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.22%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Archrock Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac" or the "Company") announced today that it will report its first quarter 2026 financial results prior to the Company's conference call, which will be webcasted on Thursday, May 7th, 2026, at 11:00 a.m. Eastern / 10:00 a.m. Central. To register for and access the event, please click here. An archive of the webcast will be available shortly after the call's conclusion on the IR Calendar section of ProFrac's invest.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2026 first quarter ended March 31, 2026. First Quarter 2026 Results Total revenue was $450 million compared to fourth quarter revenue of $437 million Net loss was $81 million compared to net loss of $141 million in the fourth quarter Adjusted EBITDA¹ was $54 million compared to $61 million in the fourth quarter; 12% of revenue in the f.
ProFrac Holding Corp. (ACDC - Free Report) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.37. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -28.17%. A quarter ago, it was expected that this company would post a loss of $0.44 per share when it actually produced a loss of $0.51, delivering a surprise of -15.91%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
ProFrac Holding Corp., which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $449.6 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 15.15%. This compares to year-ago revenues of $600.3 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ProFrac Holding Corp. shares have added about 69.2% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for ProFrac Holding Corp.?While ProFrac Holding Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ProFrac Holding Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.32 on $424.12 million in revenues for the coming quarter and -$1.20 on $1.68 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, KLX Energy Services (KLXE - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This service provider to oil and natural gas producers is expected to post quarterly loss of $1.27 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.
KLX Energy Services' revenues are expected to be $146.5 million, down 4.9% from the year-ago quarter.
Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and ProFrac Holding Corp. (ACDC - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 13.3%, the stock of this company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ACDC meets this criterion too, as the stock gained 21.8% over the past 12 weeks.
Moreover, the momentum for ACDC is fast paced, as the stock currently has a beta of 1.51. This indicates that the stock moves 51% higher than the market in either direction.
Given this price performance, it is no surprise that ACDC has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACDC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ACDC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ACDC is currently trading at 0.67 times its sales. In other words, investors need to pay only 67 cents for each dollar of sales.
So, ACDC appears to have plenty of room to run, and that too at a fast pace.
In addition to ACDC, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
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After more than a decade of disciplined budgeting and limited capital expenditure, oil and gas companies are opening their wallets again. The commodity supercycle of the mid-2000s left the industry overextended, with bloated deepwater projects, uneconomic oil sands expansions, and Arctic ventures that never panned out. When crude collapsed in 2014, the resulting hangover ushered in a structural shift toward capital restraint, shareholder returns, and ESG-driven caution that persisted for the better part of a decade.
That era appears to be ending. With oil prices hovering near $100 and no near-term catalyst for a meaningful pullback, producers are doing something they haven't done in years, investing aggressively in new production. And the biggest beneficiaries aren't the producers themselves, but the companies that supply the rigs, the frac crews, and the subsea equipment that make drilling possible.
Among this group, Valaris ((VAL - Free Report) ), ProFrac Holding Corp. ((ACDC - Free Report) ) andHelix Energy Solutions Group ((HLX - Free Report) ) stand out for strong momentum, earnings upgrades and considerable industry tailwinds.
Image Source: Zacks Investment Research
The Capex Cycle Is Turning and Oil Services Stocks LeadThe parallel to the technology sector is hard to ignore. After a brief discipline phase in 2022-2023 marked by layoffs and "year of efficiency" mantras, Big Tech found its permission slip in artificial intelligence and began spending at record levels. The Mag 7 are collectively guiding for over $680 billion in capex for 2026, up from roughly $400 billion in 2025, funding data centers, GPU clusters and AI infrastructure at a pace that would have been unthinkable two years ago.
To put that in perspective, total global oil and gas capital expenditure across all segments, upstream, midstream, and downstream is estimated at roughly $680 billion in 2026. Seven technology companies are now spending as much on AI infrastructure as the entire global energy industry spends to find, produce, transport, and refine the commodity that powers the physical economy. But we could see that already sizable energy capex rise, which would have a significant ripple effect on adjacent industries.
Oil and gas is getting its own version of a permission slip, not from a technological paradigm shift, but from geopolitics and supply scarcity. The Strait of Hormuz crisis, triggered by the US-Israeli strikes on Iran in late February 2026 and the subsequent regional escalation involving Gulf states has effectively removed roughly 20 million barrels per day of transit capacity from global markets. WTI crude surged from the mid-$50s at the start of the year to well above $100, and the disruption shows no signs of resolving quickly.
The response from producers has been swift. Diamondback Energy, the third-largest Permian operator, abandoned its capital discipline framework and began adding rigs and frac crews. ConocoPhillips raised capex guidance. Continental Resources reversed a planned 20% spending cut and instead increased caped 15% to 20%. These represent a potential strategic shift in how management teams are thinking about reinvestment.
Why Services and Drilling Stocks are Beating ProducersThe VanEck Oil Services ETF ((OIH - Free Report) ) is up nearly 60% year-to-date, almost doubling the return of the Energy Select Sector SPDR Fund ((XLE - Free Report) ) at around 36%. The SPDR S&P Oil & Gas Exploration & Production ETF ((XOP - Free Report) ) sits in between at approximately 40%. This dispersion tells an important story about where the real leverage sits in a capex upcycle.
XLE is dominated by integrated majors, ExxonMobil and Chevron alone account for over 40% of the portfolio. These companies benefit from higher oil prices, but their earnings are diversified across refining, chemicals, and midstream operations. That diversification dampens their sensitivity to the upstream drilling cycle. XOP captures purer E&P exposure, but producers are price-takers and their fortunes rise and fall with the commodity itself.
Oil services companies operate differently. They get paid when producers drill, and they benefit from pricing power when capacity gets tight. SLB, Halliburton, and Baker Hughes, the core holdings of OIH, are picks-and-shovels plays on the drilling cycle. When every E&P in the Permian is scrambling to add rigs simultaneously, the companies that own those rigs and frac fleets can command premium pricing.
The Zacks Rank data confirms this dynamic from the bottom up. Scanning the Oils-Energy sector, the strongest momentum and earnings revision trends are concentrated in services and drilling names, such as Patterson-UTI, Valaris, Nabors, ProFrac, KLX Energy, and Helix Energy Solutions are all clustered near the top of the momentum rankings. The E&P companies sit in the middle tier, while the integrated majors, the names that dominate XLE, are near the bottom.
This isn't coincidental. It's the anatomy of a capex upcycle: the picks-and-shovels names lead on earnings revisions, the producers follow, and the diversified giants lag because their other business segments dilute the upstream signal.
Image Source: Zacks Investment Research
The Capacity Bottleneck Is RealWhat makes this cycle particularly compelling for services investors is the degree to which a decade of underinvestment has constrained supply-side capacity. Halliburton's CEO noted on the Q1 earnings call that "white space" in the frac calendar is "all but gone" for Q2, with an uptick in inbound calls for spot work. Transocean booked $1.6 billion in new contracts at roughly $410,000 average day rates, the highest in over a decade.
This is the natural consequence of years of capital starvation. Rig counts were slashed, fleets were cold-stacked, and equipment was decommissioned. Rebuilding that capacity takes time and capital, which means the companies that maintained their fleets through the downturn are now in a position to dictate terms.
The offshore market is telling a similar story. Deepwater commitments in Brazil's Santos Basin, Guyana's Stabroek block, and West Africa are not short-cycle spending decisions that can be reversed if oil pulls back. These are multi-billion-dollar infrastructure projects with production timelines stretching decades. SLB's Production Systems segment grew 23% year-over-year in Q1, reflecting the durability of these long-cycle commitments.
ProFrac Holding Corp Shares Push New HighsProFrac is a pure-play completions company focused on hydraulic fracturing, proppant production, and related oilfield services. If there is a single company that captures the domestic land-based capex acceleration story, it's ACDC.
When US producers decide to drill more wells, they need frac crews to complete them, and ProFrac controls meaningful capacity in that market. The company has been through a difficult stretch with Q1 2026 revenue of $450 million was down meaningfully from the prior year, and the company posted a net loss of $83.5 million. But the quarter was marred by approximately $9 million in weather-related EBITDA headwinds, and importantly, the trajectory shifted meaningfully in late February as operator sentiment improved and activity levels accelerated.
CEO Ladd Wilkes made a point on the earnings call that should catch investors' attention, noting that current pricing remains at roughly 60% of where it was in 2022, indicating substantial room for price improvement as demand catches up to capacity. The company's frac calendar has continued to tighten from Q1 levels, with significant spot work converting to dedicated programs, particularly among private operators.
Despite the mixed results, the stock is up roughly 63% year-to-date and pushing new YTD highs today, reflecting the market's anticipation of the capex inflection and strong price momentum. But if pricing power continues to build as frac capacity tightens further, there is still meaningful earnings revision upside ahead. In the last 60 days, current year estimates are up 10% and next year 33%, giving the stock a Zacks Rank #2 (Buy) rating.
Image Source: TradingView
Valaris Stock Breaks OutValaris is one of the world's largest offshore contract drillers, operating a fleet of drillships, semisubmersibles, and modern jackups across deepwater and international markets. The company represents the long-cycle, offshore side of the capex thesis, a fundamentally different dynamic than the short-cycle shale plays that dominate domestic services.
The story here begins with the post-bankruptcy transformation. Valaris emerged from Chapter 11 in 2021 with a clean balance sheet, and the current offshore upcycle has placed the company squarely in the path of rising demand. Day rates have surged to decade-plus highs as deepwater operators in Brazil, Guyana, and West Africa commit to multi-year drilling programs that cannot be easily unwound.
Q1 2026 results showed revenue of $465 million, a top-line beat versus consensus expectations of $446 million, though revenue was down 25% year-over-year due to fewer operating days and the sale of several units. The EPS miss (-$0.24 versus expectations of -$0.12) reflected merger-related integration costs and elevated war-risk insurance expenses tied to the Middle East conflict. Revenue efficiency remained strong at 98%, indicating that when rigs are working, they're performing reliably. The company ended Q1 with $578 million in cash and a contract backlog of $4.9 billion.
The transformative catalyst for Valaris is the pending all-stock merger with Transocean, announced in February 2026. The combined entity will operate a fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semisubmersibles, and 31 modern jackups, with a pro forma enterprise value of approximately $17 billion and a combined backlog approaching $11 billion, making the combined group the world's largest offshore drilling contractor by fleet size.
For investors, the Transocean combination creates a dominant offshore drilling platform positioned for a multi-year deepwater capex cycle. The combined fleet will have unmatched reach across the world's most attractive offshore basins, and the scale advantages should improve cash flow and accelerate deleveraging.
Earnings estimates have risen across the board, with current quarter forecasts jumping 37% in the last month and next quarter by 22% in the same period, giving it a Zacks Rank #2 (Buy) rating. The stock also just broke out from a bullish consolidation, making it a worthy candidate for buying shares on a pullback.
Image Source: TradingView
Helix Energy Solutions Group Approaches Breakout LevelHelix Energy Solutions occupies a unique niche in the offshore services value chain. While companies like Valaris drill the wells, Helix handles what comes after — well intervention, subsea robotics, and decommissioning services. It's the maintenance and lifecycle management side of offshore energy, which provides a more durable revenue stream than pure drilling activity.
The company reported Q1 2026 revenue of $288 million, beating consensus estimates by a meaningful margin ($24 million above expectations). The quarter reflected expected seasonality, winter weather impacts the North Sea and Gulf of America shelf operations, and included costs from the successful workover of the company's Thunder Hawk field. Despite a net loss of $13 million, Helix generated $59 million in free cash flow and ended the quarter with $501 million in cash and $612 million in total liquidity against just $310 million in funded debt. That's a notably strong balance sheet for a company of this size.
Full-year 2026 guidance calls for revenue of $1.2-$1.4 billion and EBITDA of $230-$290 million, with the second and third quarters expected to be the most active. CEO Owen Kratz noted that recent commodity price increases have generated improved demand for the company's services, and government actions in the North Sea have provided a regulatory catalyst for decommissioning activity.
The strategic catalyst for Helix is the recently announced all-stock merger with Hornbeck Offshore Services, expected to close in the second half of 2026. The combination creates what both companies describe as a "premier integrated offshore services company," merging Helix's well intervention assets and subsea robotics with Hornbeck's high-specification offshore support vessel fleet. The combined entity will operate under the Hornbeck Offshore Services name (ticker: HOS) and is expected to generate $75 million or more in annual revenue and cost synergies within three years. Hornbeck shareholders will own approximately 55% of the combined company, with Helix shareholders holding 45%.
What makes Helix particularly interesting in the current environment is the diversification of its end markets. Beyond traditional oil and gas, the combined company will serve defense, renewables, and scientific research applications, providing some insulation from crude price volatility that pure drillers don't have.
Helix group has seen earnings estimates rise across timeframes, earning it a Zacks Rank #2 (Buy) rating, while the stock simultaneously approaches a major breakout level.
Image Source: TradingView
What Could Derail the ThesisThe bull case for oil services rests on the durability of the capex cycle. If crude prices remain elevated and producers continue to invest, services companies will continue to see strong demand and improving pricing power. But this thesis is not without risk.
The most obvious risk is a resolution to the Hormuz crisis. A ceasefire or diplomatic breakthrough that reopens the Strait could take $20-30 off crude relatively quickly. The memory of $57 oil at the start of the year is fresh, and the Dallas Fed's latest energy survey showed plenty of E&P executives still skeptical that current prices will hold long enough to justify major investment commitments. If crude falls sharply, the capex acceleration could stall as quickly as it started, and services companies would give back their outperformance faster than XLE, given the same operating leverage that drove them higher.
The counterpoint is that a resolution doesn't necessarily mean immediate normalization. Oil analysts have estimated that for every day the Strait is closed, it takes roughly a week for the market to normalize when accounting for tanker fleet dislocations, port backlogs, insurance repricing, and the restart of shut-in production. The Strait has been effectively closed for 78 days, which points to approximately 78 weeks of normalization, stretching into November 2027. Saudi Aramco CEO Amin Nasser reinforced this on his Q1 earnings call, warning that even if Hormuz opened today, it would take months to rebalance, and if the reopening is delayed further, normalization extends well into 2027.
There's also a historical precedent worth noting: OIH's 10-year return is actually negative. The oil services sector has been one of the most brutal areas of the market over the past decade, and investors who overstayed their welcome in the 2014 cycle paid dearly for it. This is a sector where timing and discipline matter enormously.
That said, the structural underinvestment argument supports elevated prices even without the geopolitical premium. The world has not built enough production capacity to meet demand growth, and the capex required to close that gap flows directly through the services companies that sit at the center of this article.
It's also worth noting that two of the three companies profiled above. These aren't defensive consolidation plays to survive a downturn. These are deals structured around the belief that the demand environment has legs and that deepwater programs, well intervention backlogs, and offshore activity levels justify building larger, more capable platforms to capture multi-year revenue streams. When management teams and boards are betting their corporate structure on a cycle, that tells you something about their confidence in its durability.
For now, the earnings revision cycle is pointing clearly in one direction, and the Zacks Rank data is confirming it across the services and drilling complex. The tech sector found its reason to spend. Oil and gas may have found its own.
