Carbo Ceramics, Inc. (NYSE:CRR) is the world’s largest supplier of ceramic proppant used in the fracturing process for oil and gas companies — commonly referred to as “fracking.” Carbo Ceramics is also a provider of software for geotechnical monitoring.
Click to EnlargeCarbo supplies to oil and gas wells and oilfield service companies. This company had a string of successful quarters, but when analysts hedged on predicting the Q3 earnings it fell to a low of $90.
But analysts were wrong and its Q3 results easily topped estimates with revenues up 40% amid 30% volume growth. Stephens Co. upgraded the stock to “outperform” with a target of $190. Technically the gap that opened yesterday from $124 to $135 will probably be partially closed, and so we’d like to buy it at $130 or lower for a trade to $170.
Get Serge Berger’s take on the markets: Only a fool would chase this bear market rally.
Get Sam Collins’ take on the markets: Warning: The ride down will be as fast as the ride up.