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Green Plains (GPRE) Stock Jumps 6.2%: Will It Continue to Soar?

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Green Plains Renewable Energy (GPRE - Free Report) shares rallied 6.2% in the last trading session to close at $27.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 31.8% gain over the past four weeks.

Optimism over the acquisition of Fluid Quip Technologies in partnership with BlackRock and Ospraie Management and the carbon offtake agreement with Summit Carbon Solutions is driving the stock higher. The buyout of Fluid Quip helps Green Plains to expand renewable corn-oil production capabilities, broaden product offerings and accelerate the deployment of its Ultra-High Protein technology. The partnership with Summit Carbon in the world’s biggest carbon capture and sequestration project also supports Green Plains’ transformation strategy.

 

Price and Consensus

Price Consensus Chart for Green Plains

This ethanol production, marketing and commodities company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -575%. Revenues are expected to be $619.6 million, down 2.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Green Plains, the consensus EPS estimate for the quarter has been revised 67.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GPRE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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