What Analysts Are Saying About Newpark Resources Stock

Analysts' ratings for Newpark Resources NR over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $10.75, a high estimate of $12.00, and a low estimate of $10.00. Witnessing a positive shift, the current average has risen by 7.5% from the previous average price target of $10.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Newpark Resources among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Newpark Resources. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Newpark Resources compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Newpark Resources's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Delving into Newpark Resources's Background

Newpark Resources Inc is a diversified supplier providing environmentally-sensitive products, as well as rentals and services to customers across multiple industries. The company has two operating segments: Industrial Solutions and Fluids Systems. Fluids Systems segment which generates the majority of the revenue, provides drilling, completion, and stimulation fluids products and related technical services to customers for oil, natural gas, and geothermal projects. Geographically, the company derives majority of its revenue from the United States and also has its presence in Canada, EMEA, Latin America, and Asia Pacific regions.

Newpark Resources's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Newpark Resources displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 0.77%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Newpark Resources's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 4.31%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Newpark Resources's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.74%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Newpark Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.14%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Newpark Resources's debt-to-equity ratio is below the industry average. With a ratio of 0.23, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.