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Strength Seen in Oasis Midstream Partners LP (OMP): Can Its 8.5% Jump Turn into More Strength?

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Oasis Midstream Partners LP (OMP - Free Report) shares ended the last trading session 8.5% higher at $22.36. 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 1.6% loss over the past four weeks.

Oasis Midstream Partners extended its rally for the fourth straight day, driven by the contribution and simplification agreement with Oasis Petroleum (OAS - Free Report) . Per the transaction, which was completed yesterday, Oasis Midstream acquired the Incentive Distribution Rights (IDRs), plus all remaining interests of Oasis Petroleum in two energy infrastructure entities. Oasis Midstream units have also been buoyed by an earlier-than-expected pickup in oil demand on the back of successful deployment of COVID-19 vaccines. The recovery in crude prices to around $60 a barrel has lifted the midstream space and contributed to the strength in the partnership. Further, a robust commodity price environment recently prompted RBC Capital analyst TJ Schultz to raise the price target on Oasis Midstream Partners.

Price and Consensus

Price Consensus Chart for OMP

This company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -54%. Revenues are expected to be $77.6 million, down 27.2% 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 Oasis Midstream Partners LP, the consensus EPS estimate for the quarter has been revised 30.5% 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 OMP going forward to see if this recent jump can turn into more strength down the road.

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

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