Why Oil States International Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Oil States International (NYS: OIS) rose 12% in early trading after the company reported outstanding earnings for the first quarter.

So what: Revenue in the first quarter was $1.1 billion, an increase from $760.4 million a year ago. Earnings per share more than doubled to $2.43 from $1.13 a year ago. Both results easily topped estimates.

Now what: Expanded drilling both onshore and offshore has helped drive the business higher in North America. An increase in liquids drilling helped offset a decline in natural gas demand. I don't see these trends slowing down and I think the momentum can continue. At less than 10 times forward earnings, this stock looks like a great buy -- even after today's jump.

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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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