Goodrich Petroleum shares rallied 6.7% in the last trading session to close at $22.50. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.2% gain over the past four weeks.

Goodrich Petroleum stock rose for the second straight day, driven by optimism over rising natural gas prices spurred by the slow restoration of hurricane-affected operations, anticipated pre-winter supply crunch and surging LNG consumption in Europe and Asia. The recovery in the fuel’s price to a seven-year high of over $5.70 per MMBtu has pushed drilling activity higher and contributed to the strength in Goodrich Petroleum, a natural gas operator in the Haynesville Shale in northwest Louisiana and East Texas.

This independent oil and gas company is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +594.4%. Revenues are expected to be $43.14 million, up 100.9% 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 Goodrich Petroleum, the consensus EPS estimate for the quarter has been revised marginally 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 GDP 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 >>>>