In our article about USWS Stock, we have mentioned many details for you. US Well Services, also known as USWS is an oil and gas company. They said that they aim to lead the industry in fully electric well stimulation innovation in an attempt to reduce the emissions associated with traditional hydraulic fracturing.
Both their conventional diesel and clean fleet electric hydraulic fracturing fleets are amongst the most reliable and highest performing fleets in the industry. Their business model aims to reduce cyclical exposure thereby generating better shareholder value. They have the best beta margins in the sector with 18%. They think that electric fracturing is the future of the industry and it is the only solution for critical challenges facing the industry.
USWS Reports Q1 Loss
They came out with a subpar q4 earnings 2020 and q1 earnings of 2021 report. They reported the loss of 39 Cents per share and the stock reacted to it right away. Although they lost revenue in 2020 in the oil and gas sector is till powerful.
If you look at the micro level to see what happened in 2020, you will see that USWS suffered in the first quarter of the year. However, they quickly bounced back. They averaged 5.3 fully utilized fleets for the fourth quarter of 2020. It was 4.2 for the third quarter of the year.
USWS still has 14 million in liquidity which means they have enough to help ride out the rest of the pandemic. In January USWS stock had a massive run. USWS stock price was up 94%. They have conventional diesel and also clean fleet which is electric hydraulic fracturing fleet. They are the market leader in electric fracture simulation.
U.S Well Services company reported their first quarter results. USWS stock price increased by 22.59% a few days ago. Investors saw the positivity for the US Well Services company’s first quarter of 2021. As I mentioned before, fully utilized fleets averaged 5.3 in the fourth quarter of 2020. However, it is 8.8 for the first quarter of 2021. Total revenue was $76.3 million. It is $48.1 million for q1. It is ranked 77 out of 146 industries. USWS stock closed at $0.71 on April 22 and it has risen %50 past month.
Today this USWS stock has a share price of $0.95 and USWS stock’s market cap is $86.6 million.
What’s Next for the U.S. Well Services?
This question is the most important question for the investors. However, it is not easy to answer. You can look at the company’s earnings outlook. You can check out their past quarter earnings and do expectations for the next quarters.
This penny stock is performing well at the moment. In these pandemic days people started to get vaccines. More people get the vaccine, more people are going out and traveling. You can say that demand for fuel will increase in the coming months. You can see why this stock is up right now by looking at its positive performance.
Intro to Penny Stocks
Penny stocks are the stocks with market caps under $300 million. Some penny stocks are still traded on the NASDAQ or the New York Stock Exchange. But the true penny stocks are usually traded below $1. Because of the lack of information, penny stocks are a riskier investment. The stocks which are listed on NASDAQ and NYSE are required to file while other OTC stocks are not required to file financial documents. It means penny stocks above $1 are less risky than others. They are also easily manipulated through PR pump therefore it is one of the reasons why they are riskier than normal stocks.
This content is not a financial advice. You should do your own research and you are responsible for your own decisions.