The reaction of RPC stock
RPC (RES) released its financial results for fiscal 2Q16 on July 27, 2016. That day, RPC’s stock reaction was mildly positive, rising ~1% to $14.53 from the previous day’s close. Since the beginning of the year, the share price has risen ~22%.
Halliburton (HAL), which released its financial information for fiscal 2Q16 on July 20, 2016, saw a ~2% fall in share price on the day of its earnings release.
RPC’s share price compared to the industry
In the past year, RPC stock has generated a 24.6% return, net of dividends, through July 27, 2016. In the past year, RPC has also outperformed the VanEck Vectors Oil Services ETF (OIH), which has generated a -6.7% return.
The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a 0.3% return. RPC has even outperformed the SPDR S&P 500 ETF (SPY), which had a ~7% return during the same period. RPC has significantly outperformed the US rig count, which has declined 47% in the past year.
Which drivers can affect RPC’s performance?
The US rig count has started to increase since June. If sustained, it could affect RPC’s various service lines positively in the coming quarters. In a fiscal 2Q16 press release, RPC’s CEO (chief executive officer) said, “During the latter part of the second quarter into the beginning of the third quarter, the U.S. domestic rig count increased for several consecutive weeks. In addition, during June, activity levels in several of our service lines began to increase.”
Next, let’s see what Wall Street analysts’ targets are for RPC.