Here is Why Natural Gas Services Group, Inc. (NGS) Gained Over 30% This Week

Natural Gas Services Group, Inc. (NYSE:NGS) was among the energy stocks that gained the most this week. In this article, we are going to discuss why the stock surged 21.9% between May 7th and May 14th.

An aerial view of a natural gas compressor station, its engines and piping stretching for miles.

Natural Gas Services Group, Inc. (NYSE:NGS) is a leading provider of small, medium, and large horsepower compression equipment to the oil and natural gas industry.

Investors reacted positively after Natural Gas Services Group, Inc. (NYSE:NGS) reported a strong start to the year this week, posting a record rental revenue of $38.9 million for Q1 2025, up 15% YoY. Though the company’s net income decreased slightly compared to last year, its adjusted EBITDA of $19.3 million represented a 14% YoY increase. Moreover,  its EPS of $0.38 still managed to beat estimates by $0.13. Based on its strong performance for the first quarter, NGS has increased the high-end of its adjusted EBITDA guidance for FY 2025 to $79 million. The company now anticipates adjusted EBITDA for the year to be in the range of $74 – $79 million.

While we acknowledge the potential of NGS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than NGS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.