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YPF Sociedad Anonima (YPF) Surges 6.6%: Is This an Indication of Further Gains?

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YPF Sociedad Anonima (YPF - Free Report) shares soared 6.6% in the last trading session to close at $19.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.2% gain over the past four weeks.

The bullishness can be attributed to YPF Sociedad Anonima's decision to divest aging oil fields, which demonstrates a strategic approach to optimize its portfolio and focus resources on more lucrative ventures, particularly the shale operations in the Vaca Muerta formation. Additionally, YPF's plan to add more drilling rigs in the Vaca Muerta formation indicates a proactive approach to increasing production. YPF's focus on shale gas monetization aligns with global trends towards cleaner energy sources and has been a significant driver of its stock performance.

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -88.5%. Revenues are expected to be $3.85 billion, down 9.3% 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 YPF Sociedad Anonima, the consensus EPS estimate for the quarter has been revised 86.5% 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 YPF 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 >>>>

YPF Sociedad Anonima is part of the Zacks Oil and Gas - Integrated - International industry. Eni SpA (E - Free Report) , another stock in the same industry, closed the last trading session 2.6% lower at $30.93. E has returned 4.3% in the past month.

Eni SpA's consensus EPS estimate for the upcoming report has changed -1.7% over the past month to $1.14. Compared to the company's year-ago EPS, this represents a change of -38.4%. Eni SpA currently boasts a Zacks Rank of #3 (Hold).

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