These Fracking Stocks Were Red-Hot in November (and at Least 1 Could Have Further to Go)
November was a bounce-back month for companies that produce frack sand and other materials used to prop open shale wells, with CARBO Ceramics (NYSE: CRR), Fairmount Santrol (NYSE: FMSA), and Smart Sand (NASDAQ: SND) each notching double-digit rebounds last month. Several factors drove these fracking stocks higher, including third-quarter earnings, higher oil prices, and the expectation that market conditions will continue improving.
CARBO Ceramics led the way, skyrocketing 23.2% last month. There didn't seem to be any specific fuel driving that move, since the company reported earnings in late October and analysts didn't release any new commentary. Instead, CARBO's rally appeared to be driven by a combination of factors. For starters, the company looked like it picked up right where it left off in October: The stock had surged 25% in the month's final days after the company reported a jaw-dropping 148% year-over-year improvement in revenue in the third quarter and said that its financial results should continue heading higher in the fourth quarter. CARBO also benefited from an improvement in market sentiment thanks to higher oil prices, as well as strong third-quarter reports and market commentary from rivals.
Image source: Getty Images.
Source: Fool.com