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Northern Oil and Gas (NOG) Stock Jumps 5.1%: Will It Continue to Soar?

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Northern Oil and Gas (NOG - Free Report) shares rallied 5.1% in the last trading session to close at $27.25. 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 7.4% gain over the past four weeks.

Northern Oil and Gas extended its rally for the fourth straight trading day on the back of the company’s announcement of updating its long-term base dividend growth plan. Quarterly dividend growth is now anticipated to average 23% through year-end 2023, with substantial acceleration in 2022. The bullishness could also be driven by the recent rise in energy prices. Moreover, research firm Johnson Rice upgraded its recommendation on Northern Oil and Gas to a Buy.

This independent oil and gas company is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +106.5%. Revenues are expected to be $334.31 million, up 112.5% 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 Northern Oil and Gas, the consensus EPS estimate for the quarter has been revised 6.9% 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 NOG 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 >>>>

Northern Oil and Gas is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Ranger Oil (ROCC - Free Report) , finished the last trading session 4% lower at $34.29. ROCC has returned 21.8% over the past month.

For Ranger Oil, the consensus EPS estimate for the upcoming report has changed -5.9% over the past month to $2.21. This represents a change of +466.7% from what the company reported a year ago. Ranger Oil currently has a Zacks Rank of #1 (Strong Buy).


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