Earthstone Energy shares soared 5.4% in the last trading session to close at $13.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% gain over the past four weeks.
Earthstone Energy stock ended sharply higher yesterday after oil bounced back to $70 a barrel. The commodity was buoyed by signs of optimism in Chinese oil demand, together with robust U.S. gasoline consumption. The recovery in crude prices is expected to push drilling activity higher and contributed to the strength in the Permian Basin-focused upstream operator. Another factor having a positive effect on Earthstone Energy is the announcement the acquisition of a privately-held Delaware Basin-focused E&P company for $1.5 billion.
This oil and gas company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of -21.7%. Revenues are expected to be $432.06 million, down 8.6% 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 Earthstone Energy, 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 ESTE 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 >>>>
Earthstone Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Ranger Oil , closed the last trading session 1.1% higher at $38.22. Over the past month, ROCC has returned -1%.
Ranger Oil's consensus EPS estimate for the upcoming report has changed -16.9% over the past month to $2.30. Compared to the company's year-ago EPS, this represents a change of -59.1%. Ranger Oil currently boasts a Zacks Rank of #5 (Strong Sell).
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Strength Seen in Earthstone Energy (ESTE): Can Its 5.4% Jump Turn into More Strength?
Earthstone Energy shares soared 5.4% in the last trading session to close at $13.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% gain over the past four weeks.
Earthstone Energy stock ended sharply higher yesterday after oil bounced back to $70 a barrel. The commodity was buoyed by signs of optimism in Chinese oil demand, together with robust U.S. gasoline consumption. The recovery in crude prices is expected to push drilling activity higher and contributed to the strength in the Permian Basin-focused upstream operator. Another factor having a positive effect on Earthstone Energy is the announcement the acquisition of a privately-held Delaware Basin-focused E&P company for $1.5 billion.
This oil and gas company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of -21.7%. Revenues are expected to be $432.06 million, down 8.6% 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 Earthstone Energy, 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 ESTE 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 >>>>
Earthstone Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Ranger Oil , closed the last trading session 1.1% higher at $38.22. Over the past month, ROCC has returned -1%.
Ranger Oil's consensus EPS estimate for the upcoming report has changed -16.9% over the past month to $2.30. Compared to the company's year-ago EPS, this represents a change of -59.1%. Ranger Oil currently boasts a Zacks Rank of #5 (Strong Sell).