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CNX Resources Corporation (CNX) Stock Jumps 11.1%: Will It Continue to Soar?

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CNX Resources Corporation. (CNX - Free Report) shares rallied 11.1% in the last trading session to close at $12.93. 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 5.2% gain over the past four weeks.

CNX Resources Corporation continues to benefit from its low-cost structure and high-quality assets holding. Strong production from Marcellus and Utica shales will enable the company to meet 2021 production target of 540-570 billion cubic feet equivalent (Bcfe).

CNX Resources’ strong free cash flow generation will help the company to meet debt obligation and continue with the share buyback program. During the second quarter, it repurchased 1.6 million shares of common stock at an average price of $13.89 per share for a total cost of $23 million. The company still has $215 million remaining in the share repurchase program. Systematic buyback will continue to boost its earnings.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +575%. Revenues are expected to be $421.03 million, up 537.2% 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 CNX Resources Corporation., the consensus EPS estimate for the quarter has been revised 5% 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 CNX 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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