Oversold ‘Fracking’ Supplier Has Breakout Potential

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.

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Carbo 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.

Article printed from InvestorPlace Media, https://investorplace.com/2011/10/oversold-fracking-supplier-has-breakout-potential/.

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