Why Is KLX Energy Services (KLXE) Stock Up Today?

One of the big movers in today’s market is little-known energy company KLX Energy (NASDAQ:KLXE). Shares of KLXE stock have rocketed more than 17% higher at the time of writing, on a heavy day in terms of volume.

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For many small and micro-cap energy stocks, this is a good environment to be an investor. The price of oil and gas has surged, improving the fundamentals for various smaller producers. For a company like KLX, this is the sort of backdrop that can lead to such rallies.

Notably, KLXE stock has a considerable short interest, around 15%. For investors looking at the potential for short squeezes within the energy sector (something that’s not typical, but these are atypical times), KLX Energy could be an interesting name. More speculative small cap stocks are prone to larger swings, and this environment is one that is certainly conducive to some large moves.

Indeed, until the Russia-Ukraine situation settles down, volatility is likely the name of the game in the energy sector. For traders, that’s a great thing. For long-term investors, perhaps not so much.

That said, for investors interested in this big mover, let’s dive into a few things to know.

What to Know About KLXE Stock

  • KLX Energy is a Houston-based company engaged in drilling, production and well-intervention services.
  • This company’s focus is on directional drilling services, as well as site planning and other well-related services.
  • Accordingly, as drilling volumes increase, KLX Energy may be a key beneficiary in this environment.
  • The company’s offerings also include technical services aimed at exploration companies in the oil and gas space.
  • Higher oil prices continue to boost the valuations of oil production companies, and rightly so.

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Read More:Penny Stocks — How to Profit Without Getting ScammedOn the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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