Hoegh LNG shares ended the last trading session 5.6% higher at $17.64. 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 11.7% gain over the past four weeks.

Hoegh LNG extended its rally for the seventh straight day, driven by optimism over recovering energy demand supported by multiple vaccine rollouts around the world, accelerating economic growth. Increasing demand for liquefied natural gas (LNG) from major economies in Asia is expected to boost the demand for LNG infrastructure assets in the coming days. Therefore, being a leading operator of LNG carriers, the firm will generate massive profits from the growth in demand for the commodity.

Price and Consensus

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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 >>>>