Investors planning to allocate some of their savings into penny stocks could leverage TipRanks’ penny stock screener. The tool comes in handy to find future winners. Using the screener, we have zeroed in on Nine Energy Services (NYSE:NINE) stock, which investors are starting to buy. This penny stock could benefit from increased E&P (exploration and production) activities and an improved pricing environment. Meanwhile, NINE stock has an Outperform Smart Score on TipRanks.
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Here’s Why to Bet on Nine Energy Services Stock
Nine Energy Services provides completion services to oil and gas exploration and production companies. These include cementing, wireline services, and technologies and tools used to complete the wellbore.
Nine Energy Services is benefitting from higher activity and pricing improvements. A shortage of labor and incremental exploration activity is driving prices higher, and the company expects that activity to continue. An improved pricing environment will cushion its margins and stock price.
NINE’s CEO, Ann Fox, said during the Q2 conference call that “the outlook for the remainder of 2022 and 2023 is positive.” Further, the limited amount available equipment in the market presents a solid foundation for growth for Nine Energy.
As higher commodity prices support its customers’ financials, Nine is poised to benefit from the surge in demand for its products, an increase in production volume, and pricing improvements.
Bottom Line: Is Nine Energy a Good Stock to Buy?
The improved operating environment and management’s positive commentary indicate that better days are ahead for this penny stock. EF Hutton analyst Ben Piggott has a Buy recommendation on NINE stock. His price target of $7.50 implies 184.1% upside potential. Further, hedge funds bought 74.8K NINE shares last quarter.
Additionally, NINE stock commands a Smart Score of nine out of 10 on TipRanks, meaning that it’s likely to outperform the market.
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