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Southwestern Energy (SWN) Soars 8.3%: Is Further Upside Left in the Stock?
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Southwestern Energy (SWN - Free Report) shares ended the last trading session 8.3% higher at $7.33. 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 6.8% gain over the past four weeks.
The bullishness in SWN can be attributed to the potential acquisition offer from Chesapeake Energy. The potential merger of two major players in the natural gas industry can generate optimism about the future prospects and synergies of the combined entity, further driving up the stock price. Even though the talks are in the preliminary stage the fact that Southwestern Energy is being considered for acquisition signifies that it's perceived as having potential value, as it may result in increased competitiveness and a stronger market position for the combined entity.
This independent oil and gas company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -71.9%. Revenues are expected to be $1.43 billion, down 68.4% 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 Southwestern Energy, the consensus EPS estimate for the quarter has been revised 1.8% 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 SWN going forward to see if this recent jump can turn into more strength down the road.
Southwestern Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Gulfport Energy (GPOR - Free Report) , another stock in the same industry, closed the last trading session 2.7% higher at $126.02. GPOR has returned 6.7% in the past month.
Gulfport's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.36. Compared to the company's year-ago EPS, this represents a change of -36%. Gulfport currently boasts a Zacks Rank of #2 (Buy).
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Southwestern Energy (SWN) Soars 8.3%: Is Further Upside Left in the Stock?
Southwestern Energy (SWN - Free Report) shares ended the last trading session 8.3% higher at $7.33. 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 6.8% gain over the past four weeks.
The bullishness in SWN can be attributed to the potential acquisition offer from Chesapeake Energy. The potential merger of two major players in the natural gas industry can generate optimism about the future prospects and synergies of the combined entity, further driving up the stock price. Even though the talks are in the preliminary stage the fact that Southwestern Energy is being considered for acquisition signifies that it's perceived as having potential value, as it may result in increased competitiveness and a stronger market position for the combined entity.
This independent oil and gas company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -71.9%. Revenues are expected to be $1.43 billion, down 68.4% 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 Southwestern Energy, the consensus EPS estimate for the quarter has been revised 1.8% 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 SWN 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 >>>>
Southwestern Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Gulfport Energy (GPOR - Free Report) , another stock in the same industry, closed the last trading session 2.7% higher at $126.02. GPOR has returned 6.7% in the past month.
Gulfport's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.36. Compared to the company's year-ago EPS, this represents a change of -36%. Gulfport currently boasts a Zacks Rank of #2 (Buy).