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Civeo (CVEO) Surges 5.8%: Is This an Indication of Further Gains?

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Civeo (CVEO - Free Report) shares ended the last trading session 5.8% higher at $17.60. 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 3.9% loss over the past four weeks.

Notably, increased optimism over an accelerated recovery in the Canadian segment, coupled with potential expanded work on the CGL contract and a constructive oil and gas price environment is likely to have driven the stock higher.

Price and Consensus

Price Consensus Chart for CVEO

This provider of remote-site workforce housing is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of -116.7%. Revenues are expected to be $132.75 million, up 15.7% 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 Civeo, the consensus EPS estimate for the quarter has been revised 1100% 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 CVEO 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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