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Strength Seen in Helmerich & Payne (HP): Can Its 11.2% Jump Turn into More Strength?

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Helmerich & Payne (HP - Free Report) shares ended the last trading session 11.2% higher at $49.18. 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 21.8% gain over the past four weeks.

Helmerich & Payne’s stock price rallied on the last trading day. The bullishness was driven by the company’s recent announcement of a quarterly supplemental cash dividend of 23.5 cents per share, payable on Dec 1, 2022, to stockholders of record at the close of the business on Nov 15, 2022. The company also maintained its previously announced fiscal fourth-quarter guidance. Moreover, Piper Sandler recently raised its price target for HP to $61.

This oil and gas well-drilling contractor is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +169.4%. Revenues are expected to be $591.35 million, up 72% 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 Helmerich & Payne, the consensus EPS estimate for the quarter has been revised 1.7% 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 HP 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 >>>>

Helmerich & Payne is part of the Zacks Oil and Gas - Drilling industry. Transocean (RIG - Free Report) , another stock in the same industry, closed the last trading session 4.2% higher at $3.71. RIG has returned 43.6% in the past month.

Transocean's consensus EPS estimate for the upcoming report has changed -45.1% over the past month to -$0.15. Compared to the company's year-ago EPS, this represents a change of +21.1%. Transocean currently boasts a Zacks Rank of #3 (Hold).


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