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CVR (CVI) Surges 11.1%: Is This an Indication of Further Gains?

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CVR Energy (CVI - Free Report) shares ended the last trading session 11.1% higher at $20.28. 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 13.7% loss over the past four weeks.

CVR Energy extended its rally for the third straight day, driven by optimism over crude prices spurred by a supportive macro backdrop, geopolitical tensions and the OPEC+ supply curtailments. The steady increase in commodity prices to more than $100 a barrel has lifted the refining space and contributed to the strength in the company by pushing margins higher.

This diversified holding company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +84.2%. Revenues are expected to be $1.73 billion, up 18.1% 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 CVR, the consensus EPS estimate for the quarter has been revised 327.8% 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 CVI 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 >>>>

CVR belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, Murphy USA (MUSA - Free Report) , closed the last trading session 0.7% lower at $169.34. Over the past month, MUSA has returned -5.1%.

For Murphy USA, the consensus EPS estimate for the upcoming report has changed -9.9% over the past month to $2.30. This represents a change of +14.4% from what the company reported a year ago. Murphy USA currently has a Zacks Rank of #3 (Hold).


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