Stock of the Day

August 24, 2022

Cactus (WHD)

$70.17
+$0.52 (+0.7%)
Market Cap: $5.58B

About Cactus

Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.

Today's Trend

Cactus, Inc. (NYSE: WHD) shares have been volatile, with recent momentum toward the 52-week high offset by analyst caution about near-term earnings growth. The stock’s strong performance has also prompted some profit-taking and a valuation reassessment.

  • Zacks Research raised its FY2026 EPS forecast to $3.11 from $2.91, increased its Q3 2026 estimate to $0.78 from $0.76, and lifted its FY2028 forecast to $4.01 from $3.99. These revisions suggest improving expectations for the company’s longer-term earnings outlook. Cactus analyst estimates
  • Recent coverage highlighted Cactus’s 7.92% one-week gain and fresh 52-week high, supporting the stock’s momentum narrative. The company’s latest reported quarter also substantially exceeded revenue and EPS expectations, with revenue up 64.3% year over year. Cactus momentum analysis
  • Discussion of higher oil prices and rising energy activity could support demand for Cactus’s pressure-control equipment, but the articles do not identify a specific new contract or measurable earnings impact. Oil prices and Cactus investors
  • Zacks Research reduced EPS forecasts across Q4 2026 and Q1–Q4 2027. Its FY2027 estimate fell to $3.14 from $3.55, while quarterly cuts included Q1 2027 to $0.75 from $0.84, Q2 to $0.78 from $0.87, Q3 to $0.80 from $0.90, and Q4 to $0.82 from $0.94. The revisions signal weaker expected near-term earnings momentum.
  • Citigroup downgraded Cactus after its strong year-to-date performance, and shares subsequently declined 6.6% in the August 20 session. With the stock near its 52-week high and trading at a relatively elevated earnings multiple, the downgrade increases the risk of profit-taking. Citi cuts Cactus
← Previous Stock of the DayNext Stock of the Day →