Core Viewpoint - ChampionX (CHX) shows potential for significant upside, with a mean price target of $43 indicating a 41.6% increase from the current price of $30.37 [1] Price Targets - The average price target from analysts ranges from a low of $39 to a high of $51, with a standard deviation of $4.86, suggesting a consensus among analysts [2] - The lowest estimate indicates a potential increase of 28.4%, while the highest suggests a 67.9% upside [2] Analyst Sentiment - Analysts are optimistic about CHX's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][11] - Over the last 30 days, one earnings estimate has increased, leading to a 2.1% rise in the Zacks Consensus Estimate [12] Zacks Rank - CHX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]

Core Insights - ChampionX Corporation's Aerial Optical Gas Imaging (AOGI) platform has received approval from the U.S. Environmental Protection Agency (EPA) for the Methane Alternative Test Method, marking a significant advancement in emissions management [1][3]. Company Overview - ChampionX is a global leader in oilfield technology, providing innovative solutions for emissions monitoring and management [1][8]. - The company leverages 140 years of oilfield expertise to support the oil and gas sectors with advanced technologies [5][8]. AOGI Platform Details - The AOGI platform is recognized for its efficiency, capable of surveying over 150 sites per day, thus reducing time and costs for emissions monitoring [2][3]. - AOGI combines high-definition Optical Gas Imaging (OGI) technology with an advanced gimbal system to detect and visualize methane leaks with high accuracy [3][4]. Industry Impact - The approval of AOGI sets a new standard in emissions monitoring, enabling operators to meet regulatory requirements more efficiently [3][4]. - The technology is particularly beneficial for small businesses in the oil and gas industry, streamlining the leak detection process [4]. Commitment to Innovation - ChampionX emphasizes its commitment to innovation and sustainability in the oil and gas sector, reinforcing the U.S. position as a leader in efficient energy production [4][5].

THE WOODLANDS, Texas, March 04, 2025 (GLOBE NEWSWIRE) -- ChampionX Corporation (“ChampionX” or the “Company”) (NASDAQ: CHX), a global leader in oilfield technology, announced today its ChampionX Emissions Technologies’ Aerial Optical Gas Imaging (AOGI) platform has received approval from the U.S. Environmental Protection Agency (EPA) for the Methane Alternative Test Method outlined in OOOOb. This approval marks a significant milestone in emissions management, empowering operators to integrate AOGI into thei ...

Group 1: Company Overview - ChampionX (CHX) is a notable stock in the Construction sector, which consists of 87 individual stocks and ranks 16 in the Zacks Sector Rank [2] - ChampionX currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Year-to-date, ChampionX has returned approximately 8.6%, significantly outperforming the average loss of 5.1% in the Construction sector [4] - Another outperforming stock in the sector is Cavco (CVCO), which has returned 16.2% year-to-date [4] Group 3: Earnings Estimates - The Zacks Consensus Estimate for ChampionX's full-year earnings has increased by 0.9% over the past quarter, reflecting improved analyst sentiment [3] - ChampionX is part of the Engineering - R and D Services industry, which has seen an average loss of 17.1% this year, further highlighting CHX's strong performance [5] Group 4: Industry Context - The Engineering - R and D Services industry, which includes ChampionX, is currently ranked 172 in the Zacks Industry Rank [5] - In contrast, Cavco operates in the Building Products - Mobile Homes and RV Builders industry, which has a better ranking at 81 and has increased by 9.2% since the beginning of the year [6]

THE WOODLANDS, Texas, Feb. 25, 2025 (GLOBE NEWSWIRE) -- ChampionX Corporation (“ChampionX” or the “Company”) (NASDAQ: CHX), a global leader in oilfield technology, announced today that it has entered into a definitive agreement to sell all of its equity interests in US Synthetic Corporation (“US Synthetic”) to LongRange Capital, L.P. (“LongRange Capital”). US Synthetic, located in Orem, Utah, offers innovative, best-in-class polycrystalline diamond cutter inserts, bearings, valves, and mining tools to help ...

Core Viewpoint - ChampionX Corporation's US Synthetic Corp. achieved a significant legal victory as the U.S. Court of Appeals reversed a prior ITC ruling that deemed its patent claims ineligible under 35 U.S.C. § 101 [1][2]. Company Summary - US Synthetic is a leading provider of polycrystalline diamond cutters (PDC) for oil and gas drilling, focusing on innovative and high-quality products [3]. - The company has over 40 years of experience in material science applications, developing specialized products for demanding oil exploration and development projects [3]. Patent and Legal Context - The case involved U.S. Patent No. 10508502, which pertains to a PDC used in rotary drill bits, noted for its superior diamond-to-diamond bonding [2]. - The ITC initially ruled the patent claims as abstract ideas, but the Federal Circuit found them to describe a specific composition of matter, emphasizing the significance of the magnetic properties in the PDC's physical characteristics [2]. Industry Impact - The Federal Circuit's decision reinforces the validity of US Synthetic's patent, protecting its intellectual property and highlighting the importance of its technology in enhancing drilling performance and efficiency [3]. - ChampionX operates as a global leader in chemistry solutions, artificial lift systems, and engineered equipment, contributing to safe and efficient oil and gas production [4].

Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that are unprofitable or in early growth stages, as it helps assess value when earnings are minimal or non-existent.JAKKS Pacific (JAKK) , UFP Industries (UFPI) , Sunoco (SUN) , The Greenbrier Companies, Inc. (GBX) and ChampionX Corporation (CH ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics an ...

Financial Performance - Consolidated revenue for 2024 decreased by $124.3 million, or 3%, to $3,633.983 million, primarily due to a decline in revenues in Latin America and the expected decline from the Ecolab agreement[167]. - Gross profit increased by $49.1 million, or 4%, year-over-year, mainly due to productivity improvements and discretionary spend control[168]. - Selling, general and administrative expenses rose by $87.6 million, or 14%, year-over-year, largely due to transaction costs related to the pending merger with SLB and acquisitions[169]. - Production Chemical Technologies segment revenue decreased by $115.5 million, or 5%, primarily due to lower sales volumes in Latin America[176]. - Production & Automation Technologies segment revenue increased by $39.2 million, or 4%, driven by revenues from the acquisition of RMSpumptools[178]. - Operating profit for Drilling Technologies increased by $33.0 million, or 73%, primarily due to a $29.8 million gain on a sale-leaseback transaction[180]. Cash and Liquidity - Cash and cash equivalents at December 31, 2024, were $507.7 million, up from $288.6 million at December 31, 2023[184]. - Total liquidity at December 31, 2024, was $1.2 billion, consisting of $507.7 million in cash and $674.8 million available on the revolver[184]. - Long-term debt balance as of December 31, 2024, was $591.5 million, primarily consisting of the 2022 Term Loan Facility[186]. - Cash provided by operating activities increased by $49.4 million to $589.7 million in 2024, driven by tax payment deferrals and improved segment profit margins[196][197]. - Cash used in financing activities was $150.5 million in 2024, primarily due to stock repurchases and dividends paid totaling $70.5 million[202]. - Cash used for investing activities was $215.3 million in 2024, including $123.3 million for acquisitions[199]. Shareholder Returns - The Board approved a regular quarterly cash dividend increase to $0.095 per share, resulting in a dividend payable of $19.0 million as of December 31, 2024[190]. - The Share Repurchase Program was increased to $1.5 billion, with $49.4 million used to repurchase 1,611,055 shares in 2024[191]. Tax and Regulatory Matters - The effective tax rate for 2024 was 26.1%, compared to 24.8% in 2023[173]. - The company has included a current liability of $3.5 million in its provision related to the OECD's Pillar Two framework, which introduces a global minimum Effective Tax Rate of 15%[220]. - The company assesses the likelihood of recovering deferred tax assets and establishes a valuation allowance if recovery is not likely, which is a critical accounting estimate[218]. Risk Management - A 10% increase or decrease in the average exchange rates of all foreign currencies would have changed the company's revenue and income before income taxes by approximately 3.1% and 4.5%, respectively, for the year ended December 31, 2024[223]. - The company is exposed to commodity price fluctuations, particularly for metals such as nickel, chrome, and steel scrap, which can impact earnings[222]. - The company does not hedge the translation impact on earnings from foreign currency fluctuations, exposing it to potential earnings volatility[223]. - The company uses foreign currency forward contracts to manage risks associated with foreign currency exchange rates[224]. - The company maintains a five-year amortizing floating-to-fixed interest rate swap to reduce the impact of changes in interest rates on its variable-rate debt[227]. - The company does not currently intend to enter into any interest rate hedging agreements but will continue to monitor interest rate exposure[228]. Debt and Credit Facilities - The five-year revolving credit facility had an outstanding debt of $700 million with an unused capacity of $674.8 million as of December 31, 2024[204]. - The company had approximately $70.3 million in outstanding letters of credit and guarantees as of December 31, 2024[195]. - The fair value of the company's fixed-rate long-term debt and variable rate debt is estimated based on quoted market prices or prices from third-party financial institutions[228]. - The company has $8.6 million in uncertain tax positions recorded in other long-term liabilities as of December 31, 2024[219].

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. ChampionX (CHX) 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? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.ChampionX is a member of our Construction group, which includes 88 different c ...