We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vertex Energy (VTNR) Stock Jumps 95.7%: Will It Continue to Soar?
Read MoreHide Full Article
Vertex Energy (VTNR - Free Report) shares ended the last trading session 95.7% higher at $7.81. 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 177.1% gain over the past four weeks.
Vertex Energy extended its rally for the third straight day, driven by the transaction to acquire Mobile Chemical Refinery in Mobile, AL from Royal Dutch Shell . The deal, signed last week and expected to close in the fourth quarter, will see the Houston-based specialty refiner buy the Mobile facility, associated assets, and the Blakeley Island Terminal, for $75 million in cash plus the value of the inventory. Further, the transformational acquisition, which is expected to significantly increase the company’s future revenues and earnings, prompted Craig-Hallum analyst Eric A. Stine and H.C. Wainwright analyst Amit Dayal to raise their respective price targets on Vertex Energy.
Price and Consensus
This environmental services company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +88%. Revenues are expected to be $54.42 million, up 154.6% 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 Vertex Energy, the consensus EPS estimate for the quarter has been revised 600% 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 VTNR going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Vertex Energy (VTNR) Stock Jumps 95.7%: Will It Continue to Soar?
Vertex Energy (VTNR - Free Report) shares ended the last trading session 95.7% higher at $7.81. 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 177.1% gain over the past four weeks.
Vertex Energy extended its rally for the third straight day, driven by the transaction to acquire Mobile Chemical Refinery in Mobile, AL from Royal Dutch Shell . The deal, signed last week and expected to close in the fourth quarter, will see the Houston-based specialty refiner buy the Mobile facility, associated assets, and the Blakeley Island Terminal, for $75 million in cash plus the value of the inventory. Further, the transformational acquisition, which is expected to significantly increase the company’s future revenues and earnings, prompted Craig-Hallum analyst Eric A. Stine and H.C. Wainwright analyst Amit Dayal to raise their respective price targets on Vertex Energy.
Price and Consensus
This environmental services company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +88%. Revenues are expected to be $54.42 million, up 154.6% 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 Vertex Energy, the consensus EPS estimate for the quarter has been revised 600% 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 VTNR 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 >>>>