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SilverBow (SBOW) Moves 20% Higher: Will This Strength Last?
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SilverBow Resources (SBOW - Free Report) shares soared 20% in the last trading session to close at $13.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 39.9% gain over the past four weeks.
SilverBow Resources extended its rally for the fourth straight day, driven by optimism over rising natural gas prices spurred by the ongoing strength in liquefied natural gas demand and pipeline exports to Mexico. The recently announced first-quarter results also reflected positively on the stock price. Last week, the natural gas operator in the Eagle Ford Shale in South Texas not only reported better-than-expected earnings and revenues but also bumped up the midpoint of its 2021 free cash flow guidance. Further, an improving macro environment for natural gas and blowout results prompted Truist Securities to raise the price target on SilverBow Resources.
Price and Consensus
This energy company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +128.4%. Revenues are expected to be $61 million, up 145.5% 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 SilverBow, the consensus EPS estimate for the quarter has been revised 3.7% 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 SBOW going forward to see if this recent jump can turn into more strength down the road.
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SilverBow (SBOW) Moves 20% Higher: Will This Strength Last?
SilverBow Resources (SBOW - Free Report) shares soared 20% in the last trading session to close at $13.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 39.9% gain over the past four weeks.
SilverBow Resources extended its rally for the fourth straight day, driven by optimism over rising natural gas prices spurred by the ongoing strength in liquefied natural gas demand and pipeline exports to Mexico. The recently announced first-quarter results also reflected positively on the stock price. Last week, the natural gas operator in the Eagle Ford Shale in South Texas not only reported better-than-expected earnings and revenues but also bumped up the midpoint of its 2021 free cash flow guidance. Further, an improving macro environment for natural gas and blowout results prompted Truist Securities to raise the price target on SilverBow Resources.
Price and Consensus
This energy company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +128.4%. Revenues are expected to be $61 million, up 145.5% 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 SilverBow, the consensus EPS estimate for the quarter has been revised 3.7% 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 SBOW 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 >>>>