Laredo Petroleum shares ended the last trading session 13.1% higher at $40.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.4% gain over the past four weeks.
Laredo Petroleum extended its rally for the second straight day, driven by optimism over the OPEC+ cartel’s surprise decision to prolong the oil production cuts till the end of April. The stock has also been driven up by an earlier-than-expected pickup in the commodity’s demand on the back of successful deployment of COVID-19 vaccines. The recovery in crude prices to around $65 a barrel has pushed drilling activity higher and contributed to the strength in Laredo Petroleum, a Permian Basin-focused oil producer. Further, a stronger commodity price environment prompted Goldman Sachs analyst Brian Singer and Piper Sandler analyst Mark Lear to raise their respective price targets on the U.S. upstream firm.
Price and Consensus
This oil and natural gas company is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of +11.7%. Revenues are expected to be $177.18 million, down 13.6% 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 Laredo Petroleum, the consensus EPS estimate for the quarter has been revised 11.9% 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 LPI 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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Laredo Petroleum (LPI) Surges 13.1%: Is This an Indication of Further Gains?
Laredo Petroleum shares ended the last trading session 13.1% higher at $40.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.4% gain over the past four weeks.
Laredo Petroleum extended its rally for the second straight day, driven by optimism over the OPEC+ cartel’s surprise decision to prolong the oil production cuts till the end of April. The stock has also been driven up by an earlier-than-expected pickup in the commodity’s demand on the back of successful deployment of COVID-19 vaccines. The recovery in crude prices to around $65 a barrel has pushed drilling activity higher and contributed to the strength in Laredo Petroleum, a Permian Basin-focused oil producer. Further, a stronger commodity price environment prompted Goldman Sachs analyst Brian Singer and Piper Sandler analyst Mark Lear to raise their respective price targets on the U.S. upstream firm.
Price and Consensus
This oil and natural gas company is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of +11.7%. Revenues are expected to be $177.18 million, down 13.6% 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 Laredo Petroleum, the consensus EPS estimate for the quarter has been revised 11.9% 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 LPI 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 >>>>