Why This $3 Energy Stock Soared Today

Shares of Orbital Energy Group (NASDAQ: OEG) are soaring Wednesday, trading up 11% as of 2 p.m. EDT. Funnily enough, an analyst reduced its price target on the energy services stock this morning, but investors seem to have found something to like nonetheless.

All eyes were on Orbital Energy's second-quarter earnings release as investors hoped the company will provide some guidance about its path to profitability, especially after it won a big contract in July. Orbital Energy operates a group of subsidiaries, including:

The first three combined accounted for 70% of the company's revenue in Q2. As expected, total revenue increased 110% year over year to $16.3 million in Q2, thanks to contribution from private telecommunications services company Gibson Technical Services, which was acquired in April. More notably, Orbital Energy's backlog value rose to $294.9 million. For perspective, the company ended 2020 with a backlog value of only $40.4 million.

Source Fool.com