Should Investors Buy FET Stock After Its Massive 207% One-Year Run?

Forum Energy Technologies, Inc. FET is a global manufacturer of engineered equipment and consumable products for the oil and gas, defense and renewable energy industries. Its offerings support drilling, well completions, subsea operations, artificial lift, production and energy infrastructure. The company serves operators, oilfield service firms, pipeline and refinery companies, defense contractors and renewable energy customers.

Over the past year, FET stock has surged 206.7%, surpassing the sub-industry and the broader Oils-Energy sector’s 75.5% and 36.8% growth, respectively. The stock has outperformed its peers, NOV Inc. NOV and USA Compression Partners, LP USAC, which have gained 61.6% and 18%, respectively, over the same period. It would be wise to evaluate the stock’s fundamentals and overall business environment before making an investment decision.

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FET’s Positive 2026 Earnings Estimates

The Zacks Consensus Estimate implies 536.5% year-over-year growth in FET’s 2026 earnings per share, signaling a return to positive earnings growth. This anticipated growth aligns with the optimism embedded in the stock’s current price. In other words, investors are paying up for Forum Energy at a time when the company’s fundamentals are expected to accelerate. Peer comparison further highlights the strength, as the Zacks Consensus Estimate for 2026 earnings per share for NOV and USA Compression is expected to grow at rates of 48.4% and 15.8%, respectively.

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Market Share Gains & a Credible Long-Term Growth Runway

FET’s growth story is increasingly being driven by market-share gains rather than simply a rebound in oilfield activity. Since launching its “Beat the Market” strategy in 2022, the company has increased revenue per global rig by 34%, highlighting stronger penetration of its products even in a disciplined spending environment. Management believes FET’s addressable markets can expand by more than 50% over the next five years and sees a clear path to doubling revenues by 2030. The growth opportunity is supported by international expansion and technology adoption across the Middle East, Latin America and other regions. SandGuard trials, DuraLine demand, ROV aftermarket upgrades and new power-generation cooling products add multiple growth avenues. This mix of share gains, broader geographic reach and differentiated technology gives FET a stronger long-term growth profile than companies dependent only on higher rig counts.

Asset-Light Model & Operating Leverage Lift Profits

FET’s improving profitability is another major investment positive because revenue growth is translating into much faster earnings growth. In the second quarter of 2026, Drilling and Completions adjusted EBITDA increased 29%, while Artificial Lift and Downhole adjusted EBITDA rose 30%, with the latter’s adjusted EBITDA margin at 24.8%. The improvement reflects stronger volumes, favorable product mix, cost savings and better plant utilization.

Management raised its 2026 guidance for revenues to $870-$910 million and adjusted EBITDA to $115-$125 million, implying EBITDA growth of about 40% year over year versus roughly 13% revenue growth. The company’s asset-light structure further strengthens this operating leverage. FET says it can increase revenues by approximately 50% without significant new investment, while 60-70% of incremental EBITDA is expected to convert into free cash flow. This creates meaningful upside if sales continue to scale.

Recurring Demand & Strong Balance Sheet Boost Resilience

FET’s strengthening balance sheet and recurring revenue characteristics provide an important layer of financial resilience. Net debt declined to about $115 million in the second quarter of 2026, while trailing 12-month adjusted EBITDA increased to roughly $100 million, reducing the net leverage ratio to 1.1 from 1.4 in the prior quarter. At the same time, the company generated positive free cash flow, repurchased about $8 million of shares during the first half of 2026 and has returned $42 million to shareholders over the past two years.

The business model benefits from repeat demand. Roughly 80% of 2025 revenues came from consumable products and activity-based equipment used throughout drilling, completion and production operations. With $96 million of liquidity, strong order activity and a disciplined acquisition approach, FET has flexibility to fund growth, further reduce leverage and continue shareholder returns.

FET’s Discounted Valuation

Based on the forward price-to-earnings ratio, Forum Energy is trading at a discount compared with NOV and USA Compression, making it attractive to investors.

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Time to Buy?

Forum Energy, sporting a Zacks Rank #1 (Strong Buy), remains attractive to investors driven by its strong one-year rally and outperformance of its peers, NOV and USA Compression. The company is supported by sharply improving earnings expectations, market-share gains, international expansion, technology-led growth and an asset-light model that can drive faster profit and free cash flow growth. Its stronger balance sheet and recurring demand improve financial resilience and support shareholder returns.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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