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Strength Seen in Matador (MTDR): Can Its 5.3% Jump Turn into More Strength?

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Matador Resources (MTDR - Free Report) shares ended the last trading session 5.3% higher at $55.76. 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 3.3% gain over the past four weeks.

The recent surge in oil prices on account of geopolitical tensions primarily drove the stock. The price of oil is hovering around $100-per barrel mark, reflecting a significant improvement in the past year. This is beneficial for Matador as the company is a leading exploration and production firm with a strong footprint in the prolific Delaware Basin.

This independent oil and gas company is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +43.7%. Revenues are expected to be $551.79 million, up 106.8% 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 Matador, the consensus EPS estimate for the quarter has been revised 10.2% 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 MTDR 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 >>>>

Matador belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, APA (APA - Free Report) , closed the last trading session 2.2% higher at $42.22. Over the past month, APA has returned 8%.

APA's consensus EPS estimate for the upcoming report has changed +6.3% over the past month to $1.42. Compared to the company's year-ago EPS, this represents a change of +56%. APA currently boasts a Zacks Rank of #3 (Hold).


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