We recently published a list of Why These Energy Stocks Are Gaining This Week. In this article, we are going to take a look at where Nine Energy Service, Inc. (NYSE:NINE) stands against other energy stocks that are gaining this week.
The energy sector has outperformed the broader market so far this year, with gains of 2.7% against the general market’s surge of 1.48%. This comes after a disappointing 2024 when the energy sector lagged significantly behind gains of 25% by the wider market.
READ ALSO: 12 Best Oil Refinery Stocks To Invest In According to Analysts and 11 Best Natural Gas Stocks To Buy Now
As the world gets hungry for more and more energy, the International Energy Agency has forecasted the world’s electricity consumption to rise at its fastest pace in recent years, growing at close to 4% annually through 2027. The uptick can be mainly attributed to a surge in industrial production, increased demand for air conditioning, accelerating electrification, primarily by the transport sector, and the rapid expansion of data centers.
Electricity demand in the United States, the second-largest consumer in the world after China, is to grow at an average annual rate of about 2% over the period 2025-2027, driven by the strong demand growth from the data center sector.
Other sectors, including natural gas, also stand to benefit tremendously from the ongoing AI boom and the accompanying data centers, as several dozen new gas-fired power plants are expected to be built in the US in the next few years. According to data from S&P Global Commodity Insights, if even a quarter of the projected data center load is supplied by gas-fired generation, this would translate to a 2% increase in total US gas demand in 2040, providing some much-needed respite to a sector that has faced a series of challenges over the last year.
Methodology
To collect data for this article, we have referred to several stock screeners to find energy stocks that have surged the most between February 14 to February 24, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a drilling rig with its silhouette against a sunset sky.
Nine Energy Service, Inc. (NYSE:NINE)
Share Price Gains Between Feb. 14 – Feb. 24: 4.24%
Nine Energy Service, Inc. (NYSE:NINE) operates as an onshore completion services provider that targets unconventional oil and gas resource development in North American basins and internationally. The company announced earlier this month it has scheduled its fourth quarter and full-year 2024 earnings conference call for Thursday, March 6, 2025.
Nine Energy Service, Inc. (NYSE:NINE) topped market expectations in its third quarter, posting revenue of $138.16 million, beating analysts’ estimates by $3.56 million and above the range of its original guidance of $127 million to $137 million. This uptick was driven mostly by its cementing business, where it increased market share by approximately 23% over Q2 within the areas it operates. Total revenue of the cementing business also surged by 12% over Q2, despite a declining rig count. The company expects Q4 to be down compared with Q3 with projected revenue between $132 million and $142 million, primarily due to a moderate slowdown due to budget exhaustion, weather, and holidays, as well as a decrease in international tool sales.
Overall, NINE ranks 7th on our list of energy stocks that are gaining this week. While we acknowledge the potential for NINE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NINE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
