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Strength Seen in Whiting Petroleum Corporation (WLL): Can Its 5.5% Jump Turn into More Strength?

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Whiting Petroleum Corporation shares soared 5.5% in the last trading session to close at $74.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.1% loss over the past four weeks.

Whiting Petroleum Corporation’s stock rose on the last trading day. The rally could be attributed to the increased liquidity in WLL shares before the closing of its $6 billion merger with Oasis on which Whiting shareholders will be given 0.5774 shares of OAS common stock along with $6.25 in cash for each share of the WLL stock held. Improved market conditions and soaring energy prices have also contributed to the robustness of Whiting, an independent energy firm engaged in the exploration, development and production of crude oil and natural gas properties in the United States.

This company is expected to post quarterly earnings of $6.48 per share in its upcoming report, which represents a year-over-year change of +115.3%. Revenues are expected to be $504.33 million, up 43.4% 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 Whiting Petroleum Corporation, the consensus EPS estimate for the quarter has been revised 5.4% 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 WLL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Whiting Petroleum Corporation is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, PDC Energy (PDCE - Free Report) , finished the last trading session 6.5% higher at $63.72. PDCE has returned -23.3% over the past month.

PDC Energy's consensus EPS estimate for the upcoming report has changed +3.2% over the past month to $4.77. Compared to the company's year-ago EPS, this represents a change of +187.4%. PDC Energy currently boasts a Zacks Rank of #3 (Hold).


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