Back to top

Image: Bigstock

Global Partners LP (GLP) Moves 5.6% Higher: Will This Strength Last?

Read MoreHide Full Article

Global Partners LP (GLP - Free Report) shares ended the last trading session 5.6% higher at $34.99. 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 5.7% gain over the past four weeks.

Global Partners' stock price soared on the last trading day, fueled by optimism about oil prices after production cuts by Saudi Arabia and Russia, as well as Russia's export ban on diesel and gasoline. The production cuts by Saudi Arabia and Russia, which are two of the world's largest oil producers, are expected to further tighten the global oil market and support prices. Russia's export ban on diesel and gasoline is also expected to boost oil prices, as it will reduce the supply of these products on the global market. Global Partners is a midstream company that transports, stores, and distributes oil and other petroleum products. The company is benefiting from the rising oil prices, as it is able to charge higher fees for its services.

This company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -74%. Revenues are expected to be $4.26 billion, down 7.8% 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 Global Partners LP, 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 GLP 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 >>>>

Global Partners LP belongs to the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. Another stock from the same industry, NGL Energy Partners LP (NGL - Free Report) , closed the last trading session 1.9% higher at $3.84. Over the past month, NGL has returned -0.5%.

For NGL Energy Partners LP, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.29. This represents a change of -93.3% from what the company reported a year ago. NGL Energy Partners LP currently has a Zacks Rank of #5 (Strong Sell).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

NGL Energy Partners LP (NGL) - free report >>

Global Partners LP (GLP) - free report >>

Published in