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HighPeak Energy, Inc. (HPK) Surges 6.2%: Is This an Indication of Further Gains?

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HighPeak Energy, Inc. (HPK - Free Report) shares soared 6.2% in the last trading session to close at $16.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.6% gain over the past four weeks.

HighPeak Energy ended sharply higher on the last trading day, driven by optimism over oil prices due to production cuts by Saudi Arabia and Russia. The recent strength in crude prices — to a 10-month high above $90 — and robust demand for energy is set to push drilling activity higher and contributed to the strength in HighPeak Energy, whose productive capacity is based in West Texas’ Midland Basin. Russia’s recent announcement to temporarily ban the export of diesel and gasoline, is also having a positive effect on the broader sector as well as the company.

This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -36.5%. Revenues are expected to be $287.65 million, up 40.9% 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 HighPeak Energy, Inc., the consensus EPS estimate for the quarter has been revised 1.2% 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 HPK 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 >>>>

HighPeak Energy, Inc. is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Matador Resources (MTDR - Free Report) , finished the last trading session 0.3% lower at $57.26. MTDR has returned -4.2% over the past month.

Matador's consensus EPS estimate for the upcoming report has changed +2.2% over the past month to $1.52. Compared to the company's year-ago EPS, this represents a change of -43.3%. Matador currently boasts a Zacks Rank of #3 (Hold).


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