- Our first company has good prospects but the shares are volatile.
- Pull-backs in the second are a chance to buy into a quality compounder.
Our two companies this week operate in very different industries. One is an oil & gas support services specialist with a developing pipeline of business. Its prospects look decent but there could be fair-sized fluctuations in the share price on the way. Our other company is a quality data business with a stellar record of profit growth. This is one to keep a watch on as any dips here are a fleeting opportunity to own shares in a quality business.
Hunting (HTG) supplies advanced technological and engineered products to the oil and gas industry. The buoyant backdrop to Hunting’s markets is expected to see the company move from last year’s loss-making position to an increasingly profitable one. City analysts’ forecasts have seen big upgrades since the middle of this year as more confidence has been placed in Hunting’s profit recovery. Its earnings per share (EPS) is expected to double between 2023 and 2025. The company is providing a bullish medium-term outlook for its revenues, profits and financial position.
