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Can Bonanza Creek Energy (BCEI) Run Higher on Strong Earnings Estimate Revisions?

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Bonanza Creek Energy, Inc. is an independent energy company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on BCEI’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Bonanza Creek Energy could be a solid choice for investors.

Current Quarter Estimates for BCEI

In the past 30 days, 2 estimates have gone higher for Bonanza Creek Energy with no downward movement in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 57 cents a share 30 days ago, to a loss of 47 cents today, a move of 17.5%.

Current Year Estimates for BCEI

Meanwhile, Bonanza Creek Energy’s current year figures are also looking quite promising, with 2 estimates moving higher in the past month, with no downward movement. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of $2.31 per share 30 days ago to a loss of $1.69 per share today, an increase of 26.8%.  

Bottom Line

The stock has also started to move higher lately, adding 5.1% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 (Buy) stock to profit in the near future.

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