While Wall Street and many investors are focusing on AI, there are fundamentally superior stocks flying under the radar.
Here are five stocks scoring high in my stock grader that investors should pay more attention to.
National Energy Services Reunited Corporation (NESR)
Elevated crude oil prices and the ongoing tensions in the Middle East continue to support oil and natural gas companies’ top and bottom lines.
One such company is National Energy Services Reunited Corporation (NESR), a leading oilfield services provider helping crude oil and natural gas explorers and producers maximize their well productivity and boost operational efficiency.
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In the second quarter, NESR achieved record revenue of$520.8 million, representing exceptional 59.1% year-over-year revenue growth. Adjusted earnings surged 109.5% year-over-year to $0.44 per share. This massive second-quarter performance builds directly on a strong first half of the year.
The actual results significantly outpaced Wall Street’s estimates. Going into the second-quarter release, analysts expected earnings of $0.35 per share on revenue of $448.54 million. NESR cleared those estimates with ease, delivering a major quarterly earnings surprise. NESR is a Conservative buy below $34.
My stock grading system rates National Energy Services Reunited Corporation (NESR) as an A.
For more information about my stock grading system, click here.
International Seaways, Inc. (INSW)
While there has been some progress on reopening the Strait of Hormuz, shipping rates remain elevated – and aren’t showing any signs of declining in the near-term. Rates for some Very Large Crude Carriers (VLCCs) that use the Strait of Hormuz have jumped to a whopping $470,000 per day.
Eye-popping tanker rates like that are expected to add massively to the top and bottom lines of crude oil tanker companies, like International Seaways, Inc. (INSW).
Demand for its crude oil hauling services, along with elevated shipping rates, caused International Seaways’ earnings to more than quadruple and its revenue to jump 77.6% in the first quarter. For the second quarter, International Seaways (INSW) outperformed analyst expectations, reporting $5.91 earnings per share on $467.3 million in revenue. These results exceeded forecasts of $5.26 per share, marking a fifth consecutive quarter of earnings surprises. INSW is a Conservative buy below $104.
My stock grading system rates International Seaways as an A.
For more information about my stock grading system, click here.
Okeanis Eco Tankers Corporation (ECO)
Like International Seaways, Okeanis Eco Tankers Corporation (ECO) has also profited from elevated shipping rates for crude oil and refined products.
In the second quarter, Okeanis Eco Tankers’ revenue soared 239.6% year-over-year to $318.9 million, beating estimates of $221.02 million by 44.3%. Earnings surged 602.4% year-over-year to $5.90 per share. Analysts expected earnings of $4.41 per share, so ECO posted a 33.8% earnings surprise.
In the wake of its quarterly earnings beat, the analyst community has revised third-quarter earnings estimates 54% higher in the past week alone.
Okeanis Eco Tankers also noted that it will pay a dividend of $5.25 per share on August 21. All shareholders of record on August 14 will receive the dividend. The stock has a 15% dividend yield. ECO is a Conservative buy below $70.
My stock grading system rates Okeanis Eco Tankers as an A.
For more information about my stock grading system, click here.
Tsakos Energy Navigation Ltd. (TEN)
Tsakos Energy Navigation Ltd. (TEN) partners with major oil companies – including ExxonMobil, Shell and Chevron – to haul crude oil and other petroleum products around the world.
Higher tanker rates helped the company achieve 28.4% year-over-year revenue growth and 160% year-over-year earnings growth in the first quarter. And in the wake of a positive earnings and revenue beat, analysts have nearly doubled second-quarter earnings estimates in the past month alone.
Second-quarter earnings are now forecast to soar 258.2% year-over-year to $2.40 per share. As you know, positive analyst revisions typically precede future earnings surprises. Revenue is expected to increase 41.8% year-over-year to $228.91 million. TEN is a Conservative buy below $44.
My stock grading system rates Tsakos Energy Navigation Ltd. as an A.
For more information about my stock grading system, click here.
Argan, Inc. (AGX)
This last one is an AI infrastructure play.
The data center construction boom continues unabated in the U.S. Spending on data center construction in the U.S. has now exceeded $50 billion. To put that into perspective, the U.S. has earmarked more money for data centers than it has for public transportation infrastructure (i.e., airports, mass transit, marine terminals, etc.).
That’s great news for Argan, Inc. (AGX).
Argan builds and manages power plants – gas, solar and wind – all of which will help power the new data centers coming online in the upcoming months and years.
Demand for its services was apparent in the first quarter, with a project backlog of $2.8 billion.
This massive backlog is anticipated to add to its top and bottom lines for the foreseeable future. As a result, analysts continue to revise earnings estimates higher for upcoming quarters. For the second quarter, earnings are now forecast to rise 7.6% year-over-year to $2.69 per share. That compares to previous estimates of $2.54 per share just two months ago.
Second-quarter revenue is also expected to increase 26.5% year-over-year to $300.61 million. Argan will report second-quarter results in early September. AGX is a Conservative buy below $706.
My stock grading system rates Argan as an A.
For more information about my stock grading system, click here.
In a market so focused on AI, these five stocks are a reminder that some of the strongest opportunities can still be found where Wall Street is looking least.
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