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Strength Seen in CVR (CVI): Can Its 8.5% Jump Turn into More Strength?

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CVR Energy (CVI - Free Report) shares ended the last trading session 8.5% higher at $22.77. 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 11.4% gain over the past four weeks.

CVR Energy stock ended sharply higher yesterday after some positive announcements by the company. On May 11, the downstream operator decided against acquiring more crude oil refineries and instead concentrate on renewable fuels. CVR Energy also approved a $492 million special dividend.

Price and Consensus

Price Consensus Chart for CVI

This diversified holding company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $1.21 billion, up 78.9% 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 CVR, the consensus EPS estimate for the quarter has been revised 100% 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 CVI 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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