Aris Water Solutions Soars 2.23% on Earnings Surprise

Aris Water (ARIS) surged 2.23% today, marking its third consecutive day of gains, with a cumulative increase of 6.32% over the past three days. The share price reached its highest level since April 2025, with an intraday gain of 5.09%.

The strategy of buying ARIS shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -4.78%, significantly underperforming the market. This indicates that relying on recent highs as a timing point for investment can lead to subpar returns. The maximum drawdown during this period was 33.6%, reflecting the strategy's vulnerability to downturns. Given these results, this approach may not be effective for capturing long-term growth or mitigating risks in ARIS.

backtest the return performance over the past 5 years of buying ARIS shares after the stock reach a recent High and holding for 1 week.](https://finance.yahoo.com/quote/aris-water-solutions-inc-aris/history?p=aris-water-solutions-inc-aris)

Aris Water Solutions recently saw an upgrade in its IBD SmartSelect Composite Rating from 94 to 96. This enhancement in rating is likely to bolster investor confidence and positively impact the stock's performance. The upgrade reflects the company's strong fundamentals and market position, making it more attractive to investors.

In the quarter ending March 2025, Aris Water Solutions reported earnings and revenue surprises of 8.70% and 3.37% respectively. These positive surprises indicate that the company is outperforming market expectations, which can drive investor optimism and contribute to the stock's upward trajectory. The strong financial performance suggests that Aris Water Solutions is well-positioned to continue its growth and deliver value to shareholders.