Natural Gas Services Group, Inc. (NGS) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Natural Gas Services (NGS) has shown strong stock performance, with an 11.9% increase over the past month and a 20.5% gain since the beginning of the year, outperforming both the Zacks Oils-Energy sector and the Zacks Oil and Gas - Mechanical and Equipment industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.46 against a consensus estimate of $0.33 in its last earnings report [2]. - For the current fiscal year, NGS is projected to achieve earnings of $1.62 per share on revenues of $170.08 million, reflecting a 13.29% increase in EPS and an 8.51% increase in revenues [3]. - In the next fiscal year, earnings are expected to rise to $2.11 per share on revenues of $196.07 million, indicating a year-over-year growth of 30.25% in EPS and 15.28% in revenues [3]. Valuation Metrics - NGS currently trades at 19.9 times the current fiscal year EPS estimates, slightly below the peer industry average of 20.2 times [7]. - On a trailing cash flow basis, the stock trades at 8.1 times, compared to the peer group's average of 7.8 times, suggesting it is not among the top value stocks [7]. Zacks Rank and Style Scores - NGS holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which is a positive indicator for investors [8]. - The stock has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of A, making it suitable for investors looking for strong performance [6][9].