How are energy investors positioned?
In a notable performance, Select Energy Services Inc. (NYSE:WTTR) stock has reached a 52-week high, touching $11.57. This peak reflects a significant uptrend for the company, which has seen an impressive 1-year change of 37.14%. Investors have shown increased confidence in the energy sector player, as the stock's ascent represents a robust recovery and a positive outlook for the company's financial health and market position. The 52-week high milestone is a key indicator for market watchers and shareholders, signaling potential growth and stability in Select Energy Services' operations and future prospects.
In other recent news, Select Water Solutions reported robust growth in Q1, with record-high revenues in water infrastructure and solid gains in chemical technologies. The company completed several strategic acquisitions, enhancing its disposal capacity and solid waste management capabilities. It also secured long-term contracts for pipeline gathering, recycling, and disposal projects. Looking forward, the company anticipates continued revenue and adjusted EBITDA growth, with a focus on maximizing free cash flow and expanding its pipeline network in the Delaware basin.
In addition to these developments, Citi recently upgraded Select Water Solutions' stock from Neutral to Buy, indicating a potential upside of approximately 45% from the current trading price. This move was driven by the company's strategic shift towards its Water Infrastructure business, which focuses on the management and recycling of produced water. Citi anticipates that Select Water Solutions will merit a blended multiple of around 4.7 times its estimated 2025 EBITDA, surpassing the current multiple of approximately 4.1 times.
These are among the recent developments for Select Water Solutions, a leader in water infrastructure and chemical technology. The company is positioning itself to capitalize on the growing demand for water infrastructure and chemical technology solutions, while maintaining a prudent approach to capital allocation and shareholder value creation.
InvestingPro Insights
Select Energy Services Inc. (WTTR) has recently achieved a noteworthy milestone by reaching a 52-week high, an event that has drawn the attention of investors and market analysts alike. To provide a deeper understanding of this achievement, let us consider some real-time data and InvestingPro Tips. With a market capitalization of $1.37 billion and a P/E ratio that has adjusted to 15.91 over the last twelve months as of Q1 2024, the company presents an attractive valuation relative to its near-term earnings growth. This is underscored by a PEG ratio of 0.94, indicating that the stock may be reasonably priced considering its expected growth rates.
Analyzing the company's financial health, Select Energy Services operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, suggesting a solid financial foundation. Moreover, the company has been profitable over the last twelve months, and analysts predict profitability will continue this year. These factors contribute to the stock's low price volatility, offering a more stable investment option in the energy sector. Additionally, the stock has experienced a strong return over the last three months, with a 21.94% total price return during this period, and a remarkable 53.42% over the last six months.
For investors seeking further insights, there are additional InvestingPro Tips available that can provide a more comprehensive analysis of Select Energy Services' performance and potential. To explore these insights, visit the dedicated page at https://www.investing.com/pro/WTTR. And remember, by using the coupon code PRONEWS24, you can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable investment tips and data.
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