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DHT Holdings (DHT) Stock Jumps 5.6%: Will It Continue to Soar?

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DHT Holdings (DHT - Free Report) shares soared 5.6% in the last trading session to close at $6.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.

The stock gained primarily on optimism surrounding increased tanker demand as OPEC and allied oil producers including Russia last month decided to increase crude oil production, albeit modestly, despite the Russia-Ukraine war tensions.

This independent oil tanker company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -320%. Revenues are expected to be $43.88 million, down 38.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For DHT Holdings, 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 DHT 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 >>>>

DHT Holdings belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, SFL Corporation (SFL - Free Report) , closed the last trading session 2.1% higher at $10.45. Over the past month, SFL has returned -0.5%.

SFL Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. Compared to the company's year-ago EPS, this represents a change of +21.1%. SFL Corporation currently boasts a Zacks Rank of #4 (Sell).


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