Energy Leader Debuts In Tough Market As Oil Prices Stay High

IPO stock leader ProFrac (PFHC) debuted last week during the brutal stock market correction. PFHC shares are now forming their first base. ProFrac was on the…

IBD IPO Leaders list this past week.

Oil prices remain high, with West Texas Intermediate crude trading above $112 a barrel. WTI is trading just off its late-March highs. Meanwhile, natural gas prices have been on a tear in 2022, rising at a time of year when they normally decline into mild spring weather.

IPO Stock To Watch: ProFrac

Texas-based ProFrac is a leader in providing hydraulic fracturing services with equipment, manufacturing and distribution to maximize well productivity.

“We believe the U.S. frac market is currently facing a pivotal transition with significant fleet capacity nearing retirement due to obsolescence. We believe that prolonged underinvestment has resulted in an oversupply of legacy fleets, and an increasing preference for low-emission fleets is driving an undersupply of more desirable greener frac fleets,” according to the company’s IPO filing.

ProFrac has yet to report its quarterly earnings results as a public company. In 2021, the company lost 30 cents per share, much less than the company’s loss of 82 cents per share in 2020.

IPO Stock Leader’s IBD Ratings

ProFrac has a modest 63 Earnings Per Share Rating out of a best-possible 99, according to IBD Stock Checkup. The company’s lack of an established earnings track record negatively impact the EPS Rating. A weaker-than-normal EPS Rating is typical of many newer issues.

ProFrac Stock Forms First Base

ProFrac stock fell sharply this past week in the wake of the company’s May 13 debut. Shares will look to form an IPO base, which would offer a buy point at 19.05, according to IBD MarketSmith chart analysis.

Keep track of the stock’s relative strength line. It measures the stock’s price performance vs. the broad market. For now, there isn’t enough price history to make it useful. As the new…

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