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Hoegh LNG (HMLP) Surges 6.8%: Is This an Indication of Further Gains?

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Hoegh LNG (HMLP - Free Report) shares rallied 6.8% in the last trading session to close at $15.69. 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 6.7% loss over the past four weeks.

Increased optimism over an accelerated recovery of the energy industry following multiple vaccine rollouts primarily drove Höegh LNG Partners' stock higher. The partnership's LNG carriers and other LNG infrastructure assets are expected to witness rising demand supported by major growing Asian economies. 

Price and Consensus

Price Consensus Chart for HMLP

This provider of liquid natural gas transportation services is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of -26.4%. Revenues are expected to be $35.7 million, down 2.7% 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 Hoegh LNG, the consensus EPS estimate for the quarter has been revised 5.4% 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 HMLP 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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