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REX (REX) Soars 8.1%: Is Further Upside Left in the Stock?
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REX (REX - Free Report) shares soared 8.1% in the last trading session to close at $98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.2% loss over the past four weeks.
Increasing demand for ethanol primarily drove the stock. In the refining industry, ethanol is blended with gasoline that not only lowers emissions from motor vehicles but also helps engines in the combustion of the fuel. Having interests in six ethanol production facilities, REX American Resources is well-placed to capitalize on the mounting ethanol demand.
This ethanol producer is expected to post quarterly earnings of $4.81 per share in its upcoming report, which represents a year-over-year change of +715.3%. Revenues are expected to be $212 million, up 68.2% 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 REX, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on REX going forward to see if this recent jump can turn into more strength down the road.
REX belongs to the Zacks Biofuels industry. Another stock from the same industry, Aemetis (AMTX - Free Report) , closed the last trading session 0.5% higher at $12.44. Over the past month, AMTX has returned 34.9%.
For Aemetis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of +60.3% from what the company reported a year ago. Aemetis currently has a Zacks Rank of #4 (Sell).
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REX (REX) Soars 8.1%: Is Further Upside Left in the Stock?
REX (REX - Free Report) shares soared 8.1% in the last trading session to close at $98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.2% loss over the past four weeks.
Increasing demand for ethanol primarily drove the stock. In the refining industry, ethanol is blended with gasoline that not only lowers emissions from motor vehicles but also helps engines in the combustion of the fuel. Having interests in six ethanol production facilities, REX American Resources is well-placed to capitalize on the mounting ethanol demand.
This ethanol producer is expected to post quarterly earnings of $4.81 per share in its upcoming report, which represents a year-over-year change of +715.3%. Revenues are expected to be $212 million, up 68.2% 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 REX, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on REX 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 >>>>
REX belongs to the Zacks Biofuels industry. Another stock from the same industry, Aemetis (AMTX - Free Report) , closed the last trading session 0.5% higher at $12.44. Over the past month, AMTX has returned 34.9%.
For Aemetis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of +60.3% from what the company reported a year ago. Aemetis currently has a Zacks Rank of #4 (Sell).