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Tenaris S.A. (TS) Stock Jumps 5.5%: Will It Continue to Soar?

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Tenaris S.A. (TS - Free Report) shares rallied 5.5% in the last trading session to close at $23.59. 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 36.3% gain over the past four weeks.

Tenaris saw the third consecutive day of price increase after the price target on the firm was raised by Stifel analyst Stephen Gengaro. Before that, Exane BNP Paribas analyst Nick Konstantakis upgraded the company from Underperform to Neutral, which also aided the stock’s rally. Increased optimism over an accelerated recovery of the overall energy sector following the massive improvement in oil prices is further driving the stock. This is because there has been an increase in demand for casing and tubing products of Tenaris for use in oil drilling activities.

Price and Consensus

Price Consensus Chart for Tenaris S.A.

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -37.5%. Revenues are expected to be $1.17 billion, down 33.8% 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 Tenaris S.A., the consensus EPS estimate for the quarter has been revised 153.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TS 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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