SilverBow Resources (SBOW Quick QuoteSBOW - Free Report) shares soared 8.8% in the last trading session to close at $17.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 57.1% gain over the past four weeks.

SilverBow Resources extended its rally for the second 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 recovery in the fuel’s price to around $3 per MMBtu has pushed drilling activity higher and contributed to the strength in SilverBow Resources, a natural gas operator in the Eagle Ford Shale in South Texas.

Price and Consensus

This energy company is expected to post quarterly earnings of $1.25 per share in its upcoming report, which represents a year-over-year change of +134.2%. Revenues are expected to be $63 million, up 153.5% 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 20.2% 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 SBOW 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 >>>>