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Par Petroleum (PARR) Surges 8.4%: Is This an Indication of Further Gains?

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Par Petroleum (PARR - Free Report) shares rallied 8.4% in the last trading session to close at $26.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 17.5% gain over the past four weeks.

Par Pacific stock extended its rally for the seventh straight day, driven by optimism over oil prices spurred by the potential demand boost from the easing of coronavirus restrictions in China. The recent strength in crude prices (at above $80 a barrel) and robust demand for energy has lifted the fuel refining space and contributed to the share price movement in Par Pacific. Besides, an improving macro environment prompted Piper Sandler analyst Ryan Todd to upgrade the rating on Par Pacific to Outperform from Neutral with a higher price target.

This independent oil and gas company is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +763.6%. Revenues are expected to be $1.9 billion, up 46.7% 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 Par Petroleum, the consensus EPS estimate for the quarter has been revised 5.6% 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 PARR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Par Petroleum is a member of the Zacks Oil and Gas - Refining and Marketing industry. One other stock in the same industry, Valero Energy (VLO - Free Report) , finished the last trading session 3.1% higher at $142.73. VLO has returned 15.8% over the past month.

Valero Energy's consensus EPS estimate for the upcoming report has changed +1.9% over the past month to $7.25. Compared to the company's year-ago EPS, this represents a change of +193.5%. Valero Energy currently boasts a Zacks Rank of #3 (Hold).

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