Key Energy Services Shares Popped: What You Need to Know
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 rig service provider Key Energy Services (NYS: KEG) emerged from the depths today and rose 10%.
So what: With oil popping 5.5% today it shouldn't be any surprise that companies related to oil are skyrocketing. Higher oil prices make oil drilling more economically feasible and should lead to increased revenue for Key Energy Services in the long term.
Now what: I wouldn't read too much into the move today. Shares were downgraded last week by Global Hunter Securities and nothing has fundamentally changed about the company today. A move based on oil prices is nice, but shares may fall again tomorrow; I would much rather see solid earnings driving the share price.
Interested in more info on Key Energy Services? Add it to your watchlist byclicking here.
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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