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Strength Seen in Aemetis (AMTX): Can Its 15% Jump Turn into More Strength?

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Aemetis (AMTX - Free Report) shares soared 15% in the last trading session to close at $7.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.1% gain over the past four weeks.

Aemetis stock extended its rally for the third straight day, driven by optimism over the renewable energy sector as a whole. The rise of ESG (Environmental, Social and Governance) investing and the broad-based transition toward clean energy has lifted the renewable fuel space and contributed to the strength in this ethanol producer.

This renewable fuels and specialty chemicals company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -18.4%. Revenues are expected to be $61.73 million, up 12.5% 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 Aemetis, 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 AMTX 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 >>>>

Aemetis is part of the Zacks Biofuels industry. REX (REX - Free Report) , another stock in the same industry, closed the last trading session 2.1% higher at $95.46. REX has returned 10.3% in the past month.

For REX, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.79. This represents a change of +36.6% from what the company reported a year ago. REX currently has a Zacks Rank of #3 (Hold).


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