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Ormat Technologies (ORA) Stock Jumps 5.9%: Will It Continue to Soar?

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Ormat Technologies (ORA - Free Report) shares soared 5.9% in the last trading session to close at $76.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.9% loss over the past four weeks.

The latest uptick in Ormat Technologies’ share price can be attributed to the fact that the company is set to join the S&P MidCap 400 index, effective prior to the opening of trading on Thursday, July 7.

This geothermal company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $163.53 million, up 11.3% 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 Ormat Technologies, the consensus EPS estimate for the quarter has been revised 3.2% 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 ORA 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 >>>>

Ormat Technologies is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, NextEra Energy Partners (NEP - Free Report) , finished the last trading session 2.3% lower at $73.31. NEP has returned 4.8% over the past month.

NextEra Energy Partners' consensus EPS estimate for the upcoming report has changed -3.4% over the past month to $0.28. Compared to the company's year-ago EPS, this represents a change of +128.9%. NextEra Energy Partners currently boasts a Zacks Rank of #3 (Hold).


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