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Strength Seen in CNX Resources Corporation. (CNX): Can Its 6.2% Jump Turn into More Strength?

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CNX Resources Corporation (CNX - Free Report) shares soared 6.2% in the last trading session to close at $15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.2% gain over the past four weeks.

CNX Resources Corporation’s fourth quarter earnings per share and total revenues were better than expected.  The company now expects 2021 production volumes in the range of 540-570 billions of cubic feet equivalent (Bcfe), up from the prior view of 490-530 Bcfe. Its stable capital expenditure plan will support and boost operation.

The company has increased total proved reserves by 13% year over year to 9.55 trillion cubic feet equivalent (Tcfe). The company added 2,247 Bcfe of proved reserves through extensions and discoveries, which helped it in replacing more than 440% of 2020 net production of 511 Bcfe. Replenishment of production through the addition of new proved reserves will allow the company to sustain momentum over the long term.

Price and Consensus

Price Consensus Chart for CNX

This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +52.6%. Revenues are expected to be $405 million, down 2.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For CNX Resources Corporation., the consensus EPS estimate for the quarter has been revised 6% 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 CNX 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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