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Tellurian Inc. (TELL) Soars 20.4%: Is Further Upside Left in the Stock?

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Tellurian Inc. (TELL - Free Report) shares ended the last trading session 20.4% higher at $5.84. 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 47% gain over the past four weeks.

Tellurian extended its rally for the fifth straight day, driven by optimism over natural gas prices and a key LNG export agreement between the United States and the European Union (EU). An LNG developer headquartered in Houston, TX, Tellurian is trying to get its Driftwood project off the ground and so the deal was a particularly encouraging development for the company.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $27.67 million, up 217.7% 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 Tellurian Inc., the consensus EPS estimate for the quarter has been revised 1400% 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 TELL 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 >>>>

Tellurian Inc. belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, Phillips 66 (PSX - Free Report) , closed the last trading session 3.4% higher at $83.85. Over the past month, PSX has returned -2.8%.

Phillips 66's consensus EPS estimate for the upcoming report has changed -5.7% over the past month to $1.80. Compared to the company's year-ago EPS, this represents a change of +255.2%. Phillips 66 currently boasts a Zacks Rank of #3 (Hold).

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