In order to tap our nation’s abundance, first you have find it. That’s where Geospace Technologies (NASDAQ:GEOS) comes in. The firm — formally known as OYO Geospace — designs and sells seismic equipment used to detect pockets of hydrocarbons.
Energy companies have been using seismic data since the 1920s to identify various geological conditions that are favorable for oil/natural gas and to evaluate their various drilling potentials. In recent years, the use of advanced 3D seismic-data equipment has been crucial to the discovery and development of the pockets of natural gas in shale formations.
Geospace’s shares have jumped about 81% over the last six months as the company continues to rack up new contracts with firms like Statoil (NYSE:STO) and Dawson Geophysical (NASDAQ:DWSN), as well as expand its revenue base.
While shares of GEOS aren’t cheap at a P/E of 33, they’re less expensive than many rivals across a multitude of metrics — including ROE, price-to-sales and price-to-book ratios. Overall, Geospace makes an ideal way to play the shale boom as it matures.